CON 3990 Exam Study Questions with Complete Solutions 2023/2024 What is the Micro-purhcase threshold for supplies? - Correct Answer $10k All incentive contracts (schedule or performance) must also include what? - Correct Answer Cost incentive or constraint What requires funds to be used only for needs or services in the year of the appropriations obligation period? - Correct Answer Bona Fide Needs Rule What contract types can be used for commercial item purchases? - Correct Answer FFP or FPEPA What is the Simplified Acquisition Threshold for commercial products and services?What is it for non-commercial? - Correct Answer $7.5M - commercial $250k for non- commercial True or False: The Gov shall use electronic commerce whenever practicable or cost- effective - Correct Answer True What is the purpose of a contract file? (4) - Correct Answer Provide background/basis for decisions Supporting actions taken Provide information for reviews and investigations Furnishing essential facts in the event of a litigation Can contract files be combined if appropriate? - Correct Answer Yes At what level are contract files maintained and why? - Correct 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? - Correct Answer When the KO receives evidence of receipt of property or final payment When is a FFP (not SAP) contract file closed out? - Correct Answer Should be closed out within 6 months after date KO receives evidence of physical completion 1 / 3
When should contract files required settlement of indirect cost rates be closed out? - Correct Answer Within 36 months of the month the KO receives evidence of physical completion When should all other (not SAP, FFP, or indirect cost rate) contract files be closed? - Correct Answer Within 20 months of the month the KO receives evidence of physical completion When is a contract considered physically complete? - Correct 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? - Correct 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? - Correct 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? - Correct Answer Justification and Approval which justifies the actions in writing, certifies the accuracy and completeness of the justifications and obtains the approval required The KO shall not award a sole-source contract for an amount exceeding $25M unless - Correct Answer they have a signed Justification and Approval A J&A should include - Correct 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 - Correct Answer under $750 - KO approval over $750k and under $100M - HCA over $100M - senior procurement executive 2 / 3
What are the basic elements required for a contract to be legally binding (4) - Correct Answer mutual assent (valid offer and acceptance) adequate consideration capacity legality What is implied actual authority? - Correct Answer authority to do what is usual, customary and necessary to accomplish the action Implied actual authority differs from express actual authority in that no express agreement is executed (e.g., when an individual is assigned a task to accomplish but the minor details are not spelled out either verbally or in writing, this is an example of implied actual authority).What is express actual authority? - Correct Answer is created by explicit language, either in writing or verbal.It should be noted that the spoken word is generally as binding as the written word; however it is sometimes more difficult to prove.What is apparent authority? - Correct Answer Apparent authority exists when someone reasonably believes an individual has the authority to act on behalf of the Government, based on his or her conduct, even though that individual has no actual authority to bind the Government.What is consideration? - Correct Answer Something of value that a promisor receives from the promisee in return for his or her offer.aka the reason a party would seek to enter into a contract Can be money, action, non action or property A contract is not enforceable without - Correct Answer consideration What is lawful purpose? - Correct Answer A contract is unenforceable if any term is contrary to public policy / against the law What is capacity? - Correct Answer the ability to understand and appreciate the terms of the contract what is mutual assent? - Correct Answer when each party makes a promise or begins to render performance offer placed by one party and acceptance by the other What is a commercial product? - Correct Answer a product that is used by the general public for purposes other than governmental purposes or a product evolved from the above which is not yet available to the market, or a product like the above, slightly modified for gov use or a nondevelopmental item
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