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CONTRACTING OFFICER
UNLIMITED WARRANT BOARD
2025 BRAND NEW ACTUAL EXAM
WITH ANSWERS.
You are the Contracting Officer for a $500M acquisition that has a
period of performance spanning six years. Because of the long
period of performance, you are in agreement with the contractor
that the contract includes an Economic Price Adjustment (EPA)
clause. When the contractor sends in their clause you notice that
the rate of inflation in the clause is 3% per year. You ask your
Price Analyst what rate of inflation is in the proposal and she
responds with 6%. Does this difference between the 3% and the
6% concern you and if so, why? - correct answer -Authority: FAR
16.203-2(a) / DFARS PGI 216.203-4
This difference is definitely a concern. The two rates need to be
the same so the clause is not "gamed" in order for the contractor
to receive additional money that is not reasonable through the
EPA clause. In this particular example the contractor has already
priced 6% in the proposal. If the actual rate of inflation is 5% the
contractor would receive an additional 2% through the EPA
clause because the clause is built on only 3% inflation. The total
inflation that would be recognized between the proposal and the
EPA adjustment would be 8%. This would result in a windfall of
the additional 2% over what is in the proposal which is a "no-no."
, Page | 2
The FAR says that when establishing a base level, the PCO
should make sure there is no duplication. DFARS says that when
using the EPA clause, use pricing assistance. AFFARS says that
adjustments are retroactive.
You are the PCO on a large experimental aircraft program
designed to achieve sustained flight at unprecedented Mach
numbers. You are preparing to issue a competitive RFP with a
CPFF contract type. The general in charge of the program
summons you to her office and says that she is interested in
incentivizing the contractor to achieve the unprecedented Mach
numbers with a performance incentive based on measured flight
test results. She asks your opinion on taking this approach and
what in the RFP would need to be changed. What do you tell the
General? - correct answer -The general is talking about an
objective performance incentive, which is technically not part of
any award fee construct, but rather a stand-alone incentive
provision. It is objective because the payment is based on an
objective, measured result rather than a subjective assessment of
the contractor's performance. Changes required for the RFP
would be:
• Development of an incentive provision for the contract that
stipulates the terms, payment amounts, etc., as well as
associated cost, quality, and schedule requirements that must be
met.
• The RFP model contract type needs to either be changed to an
incentive (e.g. CPIF) contract or the performance incentive
payment needs to be conditioned on the achievement of a certain
level of cost performance under the current CPFF contract in the
, Page | 3
RFP. (FAR 16.402-4(b) states that a cost tradeoff is required
when there are other incentives being used.)
• The incentive will also have to require that a certain schedule be
adhered to, to avoid the contractor taking an excessive amount of
time to achieve the incentive payment to the detriment of the
program's overall schedule.
o Preparing the incentive will require all or almost all of the
functional disciplines in the program office, so there is a resource
commitment.
o The incentive will have to have enough of a payment associated
with it to motivate the contractor to expend cost to achieve it.
o Finally the incentive will have to be "war-gamed" to ascertain if
there are any possible unintended consequences of the incentive.
An example of this would be the contractor placing so much
emphasis on speed that other technical or performance elements
of the program may be neglected.
• Clause FAR 52.316-10; Incentive Fee clause will have to be
added to resulting contract
What are the seven exceptions to full and open competition?
Which exception is least preferred? Who is authorized to approve
the justifications? - correct answer -•1) only one responsible
source available, 2) unusual and compelling urgency, 3) expert
services and national emergency, 4)International agreement, 5)
Statutory authorization or requirement, 6) National security, or 7)
Public interest.
, Page | 4
Justification for contract actions below $700K can be approved by
the PCO. Between $700K and $13.5M would be approved by the
competition advocate.
If a contractor is included on the List of Parties Excluded from
Federal Procurement and Nonprocurement Programs, what are
the rules on continuation of current contracts with the contractor?
- correct answer -Authority: FAR 9.405
1. Agencies may continue contracts or subcontracts in existence
at the time the contractor was debarred, suspended, or proposed
for debarment unless the agency head or a designee directs
otherwise.
2. Ordering activities may continue to place orders against
existing contracts, including indefinite delivery contracts, in the
absence of a termination.
3. Agencies shall not renew or otherwise extend the duration of
current contracts (i.e. exercise options), or consent to
subcontracts, unless the agency head or a designee authorized
representative states, in writing, the compelling reasons for
renewal or extension.
Describe how the synopsis process can be streamlined when
acquiring commercial items? - correct answer -The synopsis
required by FAR 5.203 and the issuance of the solicitation can be
combined into a single document. Therefore, it is not necessary to
CONTRACTING OFFICER
UNLIMITED WARRANT BOARD
2025 BRAND NEW ACTUAL EXAM
WITH ANSWERS.
You are the Contracting Officer for a $500M acquisition that has a
period of performance spanning six years. Because of the long
period of performance, you are in agreement with the contractor
that the contract includes an Economic Price Adjustment (EPA)
clause. When the contractor sends in their clause you notice that
the rate of inflation in the clause is 3% per year. You ask your
Price Analyst what rate of inflation is in the proposal and she
responds with 6%. Does this difference between the 3% and the
6% concern you and if so, why? - correct answer -Authority: FAR
16.203-2(a) / DFARS PGI 216.203-4
This difference is definitely a concern. The two rates need to be
the same so the clause is not "gamed" in order for the contractor
to receive additional money that is not reasonable through the
EPA clause. In this particular example the contractor has already
priced 6% in the proposal. If the actual rate of inflation is 5% the
contractor would receive an additional 2% through the EPA
clause because the clause is built on only 3% inflation. The total
inflation that would be recognized between the proposal and the
EPA adjustment would be 8%. This would result in a windfall of
the additional 2% over what is in the proposal which is a "no-no."
, Page | 2
The FAR says that when establishing a base level, the PCO
should make sure there is no duplication. DFARS says that when
using the EPA clause, use pricing assistance. AFFARS says that
adjustments are retroactive.
You are the PCO on a large experimental aircraft program
designed to achieve sustained flight at unprecedented Mach
numbers. You are preparing to issue a competitive RFP with a
CPFF contract type. The general in charge of the program
summons you to her office and says that she is interested in
incentivizing the contractor to achieve the unprecedented Mach
numbers with a performance incentive based on measured flight
test results. She asks your opinion on taking this approach and
what in the RFP would need to be changed. What do you tell the
General? - correct answer -The general is talking about an
objective performance incentive, which is technically not part of
any award fee construct, but rather a stand-alone incentive
provision. It is objective because the payment is based on an
objective, measured result rather than a subjective assessment of
the contractor's performance. Changes required for the RFP
would be:
• Development of an incentive provision for the contract that
stipulates the terms, payment amounts, etc., as well as
associated cost, quality, and schedule requirements that must be
met.
• The RFP model contract type needs to either be changed to an
incentive (e.g. CPIF) contract or the performance incentive
payment needs to be conditioned on the achievement of a certain
level of cost performance under the current CPFF contract in the
, Page | 3
RFP. (FAR 16.402-4(b) states that a cost tradeoff is required
when there are other incentives being used.)
• The incentive will also have to require that a certain schedule be
adhered to, to avoid the contractor taking an excessive amount of
time to achieve the incentive payment to the detriment of the
program's overall schedule.
o Preparing the incentive will require all or almost all of the
functional disciplines in the program office, so there is a resource
commitment.
o The incentive will have to have enough of a payment associated
with it to motivate the contractor to expend cost to achieve it.
o Finally the incentive will have to be "war-gamed" to ascertain if
there are any possible unintended consequences of the incentive.
An example of this would be the contractor placing so much
emphasis on speed that other technical or performance elements
of the program may be neglected.
• Clause FAR 52.316-10; Incentive Fee clause will have to be
added to resulting contract
What are the seven exceptions to full and open competition?
Which exception is least preferred? Who is authorized to approve
the justifications? - correct answer -•1) only one responsible
source available, 2) unusual and compelling urgency, 3) expert
services and national emergency, 4)International agreement, 5)
Statutory authorization or requirement, 6) National security, or 7)
Public interest.
, Page | 4
Justification for contract actions below $700K can be approved by
the PCO. Between $700K and $13.5M would be approved by the
competition advocate.
If a contractor is included on the List of Parties Excluded from
Federal Procurement and Nonprocurement Programs, what are
the rules on continuation of current contracts with the contractor?
- correct answer -Authority: FAR 9.405
1. Agencies may continue contracts or subcontracts in existence
at the time the contractor was debarred, suspended, or proposed
for debarment unless the agency head or a designee directs
otherwise.
2. Ordering activities may continue to place orders against
existing contracts, including indefinite delivery contracts, in the
absence of a termination.
3. Agencies shall not renew or otherwise extend the duration of
current contracts (i.e. exercise options), or consent to
subcontracts, unless the agency head or a designee authorized
representative states, in writing, the compelling reasons for
renewal or extension.
Describe how the synopsis process can be streamlined when
acquiring commercial items? - correct answer -The synopsis
required by FAR 5.203 and the issuance of the solicitation can be
combined into a single document. Therefore, it is not necessary to
