CON 3900 FINAL EXAM AND PRACTICE
EXAM NEWEST 2026 TEST BANK| CON 3900
FINALEXAM PREP WITH COMPLETE 300
REAL EXAM QUESTIONS AND CORRECT
VERIFIED ANSWERS/ ALREADY GRADED
A+ (MOST RECENT!!)
Set 1: Questions 1–10
1. Which FAR part defines “inherently governmental functions”?
A) FAR Part 2 – Definitions
B) FAR Part 7 – Acquisition Planning
C) FAR Part 15 – Contracting by Negotiation
D) FAR Part 37 – Service Contracting
Correct Answer: B
Rationale: FAR 7.503 defines inherently governmental functions as those so
intimately related to the public interest they must be performed by government
employees.
2. A cost-plus-percentage-of-cost (CPPC) contract is:
A) Allowed for R&D under $100K
B) Prohibited by 41 U.S.C. 3905
C) Acceptable for commercial items
D) Required for time-and-materials contracts
Correct Answer: B
Rationale: CPPC is unlawful because it provides no cost control incentive.
3. Under FAR Part 15, discussions are required when:
A) LPTA method is used
B) Competitive range is established
C) Only one offeror remains
D) Sealed bidding fails
,Correct Answer: B
Rationale: FAR 15.306(d) – discussions are held with all offerors in the competitive
range unless waived.
4. The “Rule of Two” requires a small business set-aside when:
A) Two or more small businesses are likely to submit offers at fair market price
B) One small business exists in the market
C) The incumbent is a small business
D) The acquisition is under SAT
Correct Answer: A
*Rationale: FAR 19.502-2 – reasonable expectation of two or more responsible small
businesses.*
5. A “justification and approval” (J&A) is required for:
A) Any contract under SAT
B) Sole-source awards exceeding the SAT
C) Small business set-asides
D) Task orders under multiple-award contracts
Correct Answer: B
Rationale: FAR 6.303 – J&A required for other than full and open competition
above SAT.
6. The Prompt Payment Act requires interest penalties after:
A) 7 days
B) 14 days
C) 30 days
D) 45 days
Correct Answer: C
Rationale: 31 USC 3903 – interest begins after 30 days from receipt of proper
invoice.
7. A “cure notice” is issued when:
A) The contractor has already defaulted
B) Performance is deficient but curable
C) The government wants to terminate for convenience
D) There is a dispute over payment
Correct Answer: B
*Rationale: FAR 49.402-3 – cure notice gives contractor time to fix performance
issues.*
,8. Which contract type places the greatest cost risk on the contractor?
A) Cost-plus-fixed-fee
B) Cost-plus-incentive-fee
C) Firm-fixed-price
D) Time-and-materials
Correct Answer: C
Rationale: In firm-fixed-price, contractor bears full cost risk; government pays only
the agreed price.
9. The “Changes” clause (FAR 52.243-1) allows the CO to unilaterally modify:
A) Any term of the contract
B) Within the general scope of the contract
C) Only price
D) Only delivery dates
Correct Answer: B
Rationale: Changes clause permits changes in specifications, work, delivery, etc.,
but not cardinal changes outside scope.
10. A “novation agreement” is used when:
A) Contractor changes name
B) Contractor transfers assets to another company
C) CO retires
D) Subcontractor demands direct payment
Correct Answer: B
Rationale: FAR Subpart 42.12 – novation recognizes successor in interest after
asset transfer.
Set 2: Questions 11–20
11. FAR Subpart 9.5 addresses:
A) Contractor qualifications
B) Organizational conflicts of interest
C) Debarment and suspension
D) Responsibility determinations
Correct Answer: B
Rationale: FAR 9.5 covers OCI – unequal access, biased ground rules, impaired
objectivity.
, 12. Under TINA, defective pricing occurs when:
A) Price is above IGE
B) Cost or pricing data is inaccurate, incomplete, or non-current
C) Contractor refuses to disclose profit margin
D) Price is below cost
Correct Answer: B
*Rationale: 41 USC 3501 – defective pricing = failure to submit accurate, complete,
current data.*
13. The “Christie doctrine” (Spearin) holds that:
A) Government warrants adequacy of its design specifications
B) Contractor warrants all design
C) Government is never liable for spec defects
D) Only commercial items have implied warranties
Correct Answer: A
Rationale: United States v. Spearin – government provides implied warranty of
design specifications.
14. A “stop-work order” is:
A) A permanent termination
B) A temporary suspension
C) A default action
D) A cure notice
Correct Answer: B
*Rationale: FAR 42.1303 – stop-work order is temporary, not a termination.*
15. The Contract Disputes Act requires claims over $100,000 to be:
A) Notarized
B) Certified by the contractor
C) Reviewed by SBA
D) Submitted within 30 days
Correct Answer: B
Rationale: 41 USC 7103 – certification required for claims > $100K.
16. FAR Part 31 cost principles apply to:
A) Firm-fixed-price contracts
B) Cost-reimbursement contracts
C) Commercial item purchases
D) Micro-purchases
EXAM NEWEST 2026 TEST BANK| CON 3900
FINALEXAM PREP WITH COMPLETE 300
REAL EXAM QUESTIONS AND CORRECT
VERIFIED ANSWERS/ ALREADY GRADED
A+ (MOST RECENT!!)
Set 1: Questions 1–10
1. Which FAR part defines “inherently governmental functions”?
A) FAR Part 2 – Definitions
B) FAR Part 7 – Acquisition Planning
C) FAR Part 15 – Contracting by Negotiation
D) FAR Part 37 – Service Contracting
Correct Answer: B
Rationale: FAR 7.503 defines inherently governmental functions as those so
intimately related to the public interest they must be performed by government
employees.
2. A cost-plus-percentage-of-cost (CPPC) contract is:
A) Allowed for R&D under $100K
B) Prohibited by 41 U.S.C. 3905
C) Acceptable for commercial items
D) Required for time-and-materials contracts
Correct Answer: B
Rationale: CPPC is unlawful because it provides no cost control incentive.
3. Under FAR Part 15, discussions are required when:
A) LPTA method is used
B) Competitive range is established
C) Only one offeror remains
D) Sealed bidding fails
,Correct Answer: B
Rationale: FAR 15.306(d) – discussions are held with all offerors in the competitive
range unless waived.
4. The “Rule of Two” requires a small business set-aside when:
A) Two or more small businesses are likely to submit offers at fair market price
B) One small business exists in the market
C) The incumbent is a small business
D) The acquisition is under SAT
Correct Answer: A
*Rationale: FAR 19.502-2 – reasonable expectation of two or more responsible small
businesses.*
5. A “justification and approval” (J&A) is required for:
A) Any contract under SAT
B) Sole-source awards exceeding the SAT
C) Small business set-asides
D) Task orders under multiple-award contracts
Correct Answer: B
Rationale: FAR 6.303 – J&A required for other than full and open competition
above SAT.
6. The Prompt Payment Act requires interest penalties after:
A) 7 days
B) 14 days
C) 30 days
D) 45 days
Correct Answer: C
Rationale: 31 USC 3903 – interest begins after 30 days from receipt of proper
invoice.
7. A “cure notice” is issued when:
A) The contractor has already defaulted
B) Performance is deficient but curable
C) The government wants to terminate for convenience
D) There is a dispute over payment
Correct Answer: B
*Rationale: FAR 49.402-3 – cure notice gives contractor time to fix performance
issues.*
,8. Which contract type places the greatest cost risk on the contractor?
A) Cost-plus-fixed-fee
B) Cost-plus-incentive-fee
C) Firm-fixed-price
D) Time-and-materials
Correct Answer: C
Rationale: In firm-fixed-price, contractor bears full cost risk; government pays only
the agreed price.
9. The “Changes” clause (FAR 52.243-1) allows the CO to unilaterally modify:
A) Any term of the contract
B) Within the general scope of the contract
C) Only price
D) Only delivery dates
Correct Answer: B
Rationale: Changes clause permits changes in specifications, work, delivery, etc.,
but not cardinal changes outside scope.
10. A “novation agreement” is used when:
A) Contractor changes name
B) Contractor transfers assets to another company
C) CO retires
D) Subcontractor demands direct payment
Correct Answer: B
Rationale: FAR Subpart 42.12 – novation recognizes successor in interest after
asset transfer.
Set 2: Questions 11–20
11. FAR Subpart 9.5 addresses:
A) Contractor qualifications
B) Organizational conflicts of interest
C) Debarment and suspension
D) Responsibility determinations
Correct Answer: B
Rationale: FAR 9.5 covers OCI – unequal access, biased ground rules, impaired
objectivity.
, 12. Under TINA, defective pricing occurs when:
A) Price is above IGE
B) Cost or pricing data is inaccurate, incomplete, or non-current
C) Contractor refuses to disclose profit margin
D) Price is below cost
Correct Answer: B
*Rationale: 41 USC 3501 – defective pricing = failure to submit accurate, complete,
current data.*
13. The “Christie doctrine” (Spearin) holds that:
A) Government warrants adequacy of its design specifications
B) Contractor warrants all design
C) Government is never liable for spec defects
D) Only commercial items have implied warranties
Correct Answer: A
Rationale: United States v. Spearin – government provides implied warranty of
design specifications.
14. A “stop-work order” is:
A) A permanent termination
B) A temporary suspension
C) A default action
D) A cure notice
Correct Answer: B
*Rationale: FAR 42.1303 – stop-work order is temporary, not a termination.*
15. The Contract Disputes Act requires claims over $100,000 to be:
A) Notarized
B) Certified by the contractor
C) Reviewed by SBA
D) Submitted within 30 days
Correct Answer: B
Rationale: 41 USC 7103 – certification required for claims > $100K.
16. FAR Part 31 cost principles apply to:
A) Firm-fixed-price contracts
B) Cost-reimbursement contracts
C) Commercial item purchases
D) Micro-purchases
