Public Contracting Overview (MCPPO 1) Questions With Complete Solutions
Best Value - (ANSWER)Means awarding contracts based on several factors, including:
-A vendor's ability to successfully complete the contract on time, at the quality level specified, at the
offered price
-Technical quality of the supplies or services offered, and
-Vendor's past performance on similar contracts
The principal objectives of public purchasing are to: - (ANSWER)-Obtain the materials, services, and
facilities required by public organizations
-When and where the materials, services, and facilities are needed
-At the best price reasonably available
-Through open, fair competition
-At a reasonable cost
Price= - (ANSWER)is the amount actually paid to a vendor for materials, services or facilities
Cost= - (ANSWER)to obtain materials, services or facilities is inevitably higher than the price paid to the
vendor. That cost included the cost of preparing specifications, advertising for bids or proposals, dealing
with vendor inquires, evaluating vendor's bids or proposals, dealing with any bid protests, contracting
and contract administration.
Competitive Marketplace: - (ANSWER)Pressures vendors to offer competitive quality at competitive
prices.
Open, fair competition: - (ANSWER)is very important purchasing objective to both the public and private
sectors.
Affirmative Market Program - (ANSWER)reserves contracts or portions of contracts for groups of
vendors that historically have been disadvantaged through discrimination
, Public Contracting Overview (MCPPO 1) Questions With Complete Solutions
Establishing Authority for Approval of Transactions - (ANSWER)The organization should clearly establish
and document which positions within the organization have the authority to approve specific
transactions.
Establishing Responsibility for Executing Transactions - (ANSWER)The organization should clearly
establish and document which positions within the organization are responsible for carrying out specific
transactions and should provide a detailed description of the procedures for carrying out and
documenting each type of transaction.
Segregation of Duties - (ANSWER)Segregation of duties means that no employee should be in a position
to carry out an improper transaction and then conceal it. In other words, a single individual should not
have the ability to authorize a transaction, carry out the transaction, record the transaction, maintain
custody of the assets resulting from the transaction, and control the books and records relating to the
transaction.
-Ex. in reading
Control of Access to Assets and Records - (ANSWER)A public organization should take reasonable care to
maintain physical security over assets. The term "assets" refers generally to items, equipment and
furnishings that are the property of the public organization. Inventories should generally be maintained
in locked storage areas accessible only to designated individuals. The organization should establish a
sign-out system to keep track of valuable items, such as tools that are needed temporarily by
employees. Items such as laptop computers can be assigned on a long-term basis to employees who
need them, and a designated individual should be responsible for maintaining records pertaining to
these assignments. The internal control system should ensure that the organization can hold employees
are held accountable for valuable equipment that they use in connection with their jobs.
Monitoring - (ANSWER)A public or private organization should monitor its internal control system. To do
this, the organization should designate an individual to periodically review the work of each employee
involved in processing transactions as well as reviewing output reports. Control activities require an
ongoing investment of time and effort.
Some key control activities related to procurement - (ANSWER)-Establishing Authority for Approval of
Transactions
-Establishing Responsibility for Executing Transactions
-Segregation of Duties
Best Value - (ANSWER)Means awarding contracts based on several factors, including:
-A vendor's ability to successfully complete the contract on time, at the quality level specified, at the
offered price
-Technical quality of the supplies or services offered, and
-Vendor's past performance on similar contracts
The principal objectives of public purchasing are to: - (ANSWER)-Obtain the materials, services, and
facilities required by public organizations
-When and where the materials, services, and facilities are needed
-At the best price reasonably available
-Through open, fair competition
-At a reasonable cost
Price= - (ANSWER)is the amount actually paid to a vendor for materials, services or facilities
Cost= - (ANSWER)to obtain materials, services or facilities is inevitably higher than the price paid to the
vendor. That cost included the cost of preparing specifications, advertising for bids or proposals, dealing
with vendor inquires, evaluating vendor's bids or proposals, dealing with any bid protests, contracting
and contract administration.
Competitive Marketplace: - (ANSWER)Pressures vendors to offer competitive quality at competitive
prices.
Open, fair competition: - (ANSWER)is very important purchasing objective to both the public and private
sectors.
Affirmative Market Program - (ANSWER)reserves contracts or portions of contracts for groups of
vendors that historically have been disadvantaged through discrimination
, Public Contracting Overview (MCPPO 1) Questions With Complete Solutions
Establishing Authority for Approval of Transactions - (ANSWER)The organization should clearly establish
and document which positions within the organization have the authority to approve specific
transactions.
Establishing Responsibility for Executing Transactions - (ANSWER)The organization should clearly
establish and document which positions within the organization are responsible for carrying out specific
transactions and should provide a detailed description of the procedures for carrying out and
documenting each type of transaction.
Segregation of Duties - (ANSWER)Segregation of duties means that no employee should be in a position
to carry out an improper transaction and then conceal it. In other words, a single individual should not
have the ability to authorize a transaction, carry out the transaction, record the transaction, maintain
custody of the assets resulting from the transaction, and control the books and records relating to the
transaction.
-Ex. in reading
Control of Access to Assets and Records - (ANSWER)A public organization should take reasonable care to
maintain physical security over assets. The term "assets" refers generally to items, equipment and
furnishings that are the property of the public organization. Inventories should generally be maintained
in locked storage areas accessible only to designated individuals. The organization should establish a
sign-out system to keep track of valuable items, such as tools that are needed temporarily by
employees. Items such as laptop computers can be assigned on a long-term basis to employees who
need them, and a designated individual should be responsible for maintaining records pertaining to
these assignments. The internal control system should ensure that the organization can hold employees
are held accountable for valuable equipment that they use in connection with their jobs.
Monitoring - (ANSWER)A public or private organization should monitor its internal control system. To do
this, the organization should designate an individual to periodically review the work of each employee
involved in processing transactions as well as reviewing output reports. Control activities require an
ongoing investment of time and effort.
Some key control activities related to procurement - (ANSWER)-Establishing Authority for Approval of
Transactions
-Establishing Responsibility for Executing Transactions
-Segregation of Duties
