1
CON 3990 EXAM 2025/2026 QUESTIONS
AND DETAILED CORRECT ANSWERS | A+
GRADE
What is the Micro-purhcase threshold for supplies? - (ANSWER)$10k
All incentive contracts (schedule or performance) must also include what? -
(ANSWER)Cost incentive or constraint
What requires funds to be used only for needs or services in the year of the
appropriations obligation period? - (ANSWER)Bona Fide Needs Rule
What contract types can be used for commercial item purchases? - (ANSWER)FFP
or FPEPA
What is the Simplified Acquisition Threshold for commercial products and
services? What is it for non-commercial? - (ANSWER)$7.5M - commercial $250k
for non-commercial
True or False: The Gov shall use electronic commerce whenever practicable or
cost-effective - (ANSWER)True
What is the purpose of a contract file? (4) - (ANSWER)Provide background/basis
for decisions
Supporting actions taken
, 2
Provide information for reviews and investigations
Furnishing essential facts in the event of a litigation
Can contract files be combined if appropriate? - (ANSWER)Yes
At what level are contract files maintained and why? - (ANSWER)Maintained at
the organizational level to ensure
effective documentation of contract actions
accessibility by principal users
minimal establishment of duplicate and working files
safeguarding classified docs
conformance with agency regs
When is a SAP contract file closed out? - (ANSWER)When the KO receives
evidence of receipt of property or final payment
When is a FFP (not SAP) contract file closed out? - (ANSWER)Should be closed out
within 6 months after date KO receives evidence of physical completion
When should contract files required settlement of indirect cost rates be closed
out? - (ANSWER)Within 36 months of the month the KO receives evidence of
physical completion
, 3
When should all other (not SAP, FFP, or indirect cost rate) contract files be
closed? - (ANSWER)Within 20 months of the month the KO receives evidence of
physical completion
When is a contract considered physically complete? - (ANSWER)the KTR has
completed required deliveries and Gov has inspected and accepted the supplies
The contractor has performed all services and the Gov has accepted the services
and
all option provisions, if any, have expired
or the Gov gives the KTR notice of termination
What are the steps to close out a contract file? - (ANSWER)1) Contract admin
office is responsible for initiating, reviewing contract fund status, and deobligating
excess funds
2)KO issues a contract completions statement
3) KO files completed statement and signed copy send to admin office
How long are contract documents retained after closeout? - (ANSWER)6 years
after final payment
What does a KO need prior to commencement of negotiations for a sole source
contract, commencement of negotiations for a contract resulting from an
unsolicited proposal, or award without providing for full and open competition? -
(ANSWER)Justification and Approval which justifies the actions in writing, certifies
the accuracy and completeness of the justifications and obtains the approval
required
, 4
The KO shall not award a sole-source contract for an amount exceeding $25M
unless - (ANSWER)they have a signed Justification and Approval
A J&A should include - (ANSWER)Description of action being approved
Description of supplies or services required + estimated value
statutory authority permitting other than full and open comp
demonstrate why specific KTR is required (instead of comp)
efforts made to solicit offers from other sources
determination of fair and reasonable anticipated cost
description of market research conducted
list of sources that expressed interest
statement of how agency may remove comp barriers in the future
KO certification
What are the thresholds for J&A approval - (ANSWER)under $750 - KO approval
over $750k and under $100M - HCA
over $100M - senior procurement executive
What are the basic elements required for a contract to be legally binding (4) -
(ANSWER)mutual assent (valid offer and acceptance)
adequate consideration
CON 3990 EXAM 2025/2026 QUESTIONS
AND DETAILED CORRECT ANSWERS | A+
GRADE
What is the Micro-purhcase threshold for supplies? - (ANSWER)$10k
All incentive contracts (schedule or performance) must also include what? -
(ANSWER)Cost incentive or constraint
What requires funds to be used only for needs or services in the year of the
appropriations obligation period? - (ANSWER)Bona Fide Needs Rule
What contract types can be used for commercial item purchases? - (ANSWER)FFP
or FPEPA
What is the Simplified Acquisition Threshold for commercial products and
services? What is it for non-commercial? - (ANSWER)$7.5M - commercial $250k
for non-commercial
True or False: The Gov shall use electronic commerce whenever practicable or
cost-effective - (ANSWER)True
What is the purpose of a contract file? (4) - (ANSWER)Provide background/basis
for decisions
Supporting actions taken
, 2
Provide information for reviews and investigations
Furnishing essential facts in the event of a litigation
Can contract files be combined if appropriate? - (ANSWER)Yes
At what level are contract files maintained and why? - (ANSWER)Maintained at
the organizational level to ensure
effective documentation of contract actions
accessibility by principal users
minimal establishment of duplicate and working files
safeguarding classified docs
conformance with agency regs
When is a SAP contract file closed out? - (ANSWER)When the KO receives
evidence of receipt of property or final payment
When is a FFP (not SAP) contract file closed out? - (ANSWER)Should be closed out
within 6 months after date KO receives evidence of physical completion
When should contract files required settlement of indirect cost rates be closed
out? - (ANSWER)Within 36 months of the month the KO receives evidence of
physical completion
, 3
When should all other (not SAP, FFP, or indirect cost rate) contract files be
closed? - (ANSWER)Within 20 months of the month the KO receives evidence of
physical completion
When is a contract considered physically complete? - (ANSWER)the KTR has
completed required deliveries and Gov has inspected and accepted the supplies
The contractor has performed all services and the Gov has accepted the services
and
all option provisions, if any, have expired
or the Gov gives the KTR notice of termination
What are the steps to close out a contract file? - (ANSWER)1) Contract admin
office is responsible for initiating, reviewing contract fund status, and deobligating
excess funds
2)KO issues a contract completions statement
3) KO files completed statement and signed copy send to admin office
How long are contract documents retained after closeout? - (ANSWER)6 years
after final payment
What does a KO need prior to commencement of negotiations for a sole source
contract, commencement of negotiations for a contract resulting from an
unsolicited proposal, or award without providing for full and open competition? -
(ANSWER)Justification and Approval which justifies the actions in writing, certifies
the accuracy and completeness of the justifications and obtains the approval
required
, 4
The KO shall not award a sole-source contract for an amount exceeding $25M
unless - (ANSWER)they have a signed Justification and Approval
A J&A should include - (ANSWER)Description of action being approved
Description of supplies or services required + estimated value
statutory authority permitting other than full and open comp
demonstrate why specific KTR is required (instead of comp)
efforts made to solicit offers from other sources
determination of fair and reasonable anticipated cost
description of market research conducted
list of sources that expressed interest
statement of how agency may remove comp barriers in the future
KO certification
What are the thresholds for J&A approval - (ANSWER)under $750 - KO approval
over $750k and under $100M - HCA
over $100M - senior procurement executive
What are the basic elements required for a contract to be legally binding (4) -
(ANSWER)mutual assent (valid offer and acceptance)
adequate consideration
