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Interviewing - for your own job

Has anyone out there had to ever interview for the position that they are already doing?

Here is the situation. I am currently employed through a project position because the position was new at the time when I was first hired and they needed to make sure that there was enough work before making it fulltime. Now they are in the process of making it full time, but the union states that they must open it up for interviews. My question is how you go into an interview with people you work with asking questions they know the answers to?

If they ask a standard list of questions, like "Can you do this or that?", how would one approach the question? I already do what they are going to ask me about, and they know the answers already.

I am not real worried, but it kind of seems like it will be a little awkward.

Thanks

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