CPPB FINAL EXAM QUESTIONS AND ANSWERS LATEST UPDATE 2023/2024

The Materials Manager for the Utility department has to keep parts and materials in stock to maintain all 42 pump stations as well as all the infrastructure to keep the town citizens supplied with clean, pure, well water. This service has to be provided 24/7, and all essential maintenance, repair parts, and pumps must be readily available. These deep well pumps cost tens of thousands of dollars, but if they are maintained correctly, they can last over 10 years. What should be done with a decommissioned pump? A. Sell is as scrap metal B. Transfer it to another entity C. Sell it via an electronic auction D. Cannibalize it for parts - ANSWER D. Cannibalize it for parts There are about 20 negotiation tactics named in the literature and prep guides such as win/win and good cop/bad cop. Other than these two, name three others and what they mean. - ANSWER Changing of position - formulate the proposals in a different way, without changing the final result. Gathering information - Ask for information form the other party to clarify their position. Making the cake bigger - offer alternatives that may be agreeable to the other party, without changing the terms What can a procurement official learn from looking at an entity's strategic plan? A. How to allocate procurement resources B. How to respond to technology changes C. How to respond to political changes D. Guidance in handling a current crisis - ANSWER A. How to allocate procurement resources During the planning stage of a procurement engagement, an entity client wanted to buy a mid range printer. They then decided that a printer/copier/scanner/fax might be better, but they aren't sure if it's worth the price. What tool can help make the determination? A. Value analysis B. Market survey C. Price analysis D. Cost analysis - ANSWER A. Value analysis During the negotiation process, it may be necessary to: A. Hide your intentions from the other team. B. Rigidly adhere to specific details. C. Anticipate the other party's tactics and plan counter-tactics. D. Conduct brainstorming sessions to develop team options. - ANSWER C. Anticipate the other party's tactics and plan counter-tactics. The use of which cost-type contract is prohibited in most jurisdictions and by the Federal government? A. Cost plus incentive fee B. Cost plus percentage of cost C. Cost without fee D. Cost sharing - ANSWER B. Cost plus percentage of cost Which of the following types of contracts establishes a source of supply and pricing for specified items or services for a specified period? A. Competitive price contract B. Fixed price contract C. Term contract D. Service contract - ANSWER C. Term contract Privity of contract deals with: A. The parties to a contract having the right to enforce it B. A party having the right to submit a bid C. A party having a right to reject an offer D. Any parties having the right to cancel a contract - ANSWER A. The parties to a contract having the right to enforce it An agency is revising its document retention schedule. Where should the government entity look for guidance? A. The Federal Acquisition Requirements. B. Legal or statutory requirements. C. The Universal Commercial Code D. Common Law - ANSWER B. Legal or statutory requirements. In public contracting, competency refers to: A. Persons representing the vendor. B. Persons of any age entering into a contract. C. Only procurement officials. D. Persons mentally capable and of the age as allowed by law. - ANSWER D. Persons mentally capable and of the age as allowed by law. Five (5) days after posting a Notice of Intent to Award, a protest is received from another responder who states that his proposal is the best value for the agency. The protester provides comprehensive, detailed information to support his position and requests that the intended award be set aside. What should be your first step in handling the protest? A. Withdraw the Notice of Intent to Award until the protest is resolved B. Confirm that the protest was received within the timeline for filing C. Allow the protester to clarify his/her best value proposal D. Convene the evaluation committee to reconsider the recommendation of award - ANSWER B. Confirm that the protest was received within the timeline for filing The Statute of Frauds is a 1677 device passed by the English Parliament and carried down to us by common law and the actions of state legislatures that: A. Prevents the validity of any oral contract. B. Requires that all bid submittals be witnessed by a notary public. C. Mandates the posting of bonds against the fraudulent actions of a vendor. D. Requires certain promises and agreements to be evidenced in writing. - ANSWER D. Requires certain promises and agreements to be evidenced in writing. The three types of competition found in the market place are: A. Inexact, impure and monastic B. Exact, pure and monopoly C. Exact, pure and monotheistic D. Pure, imperfect and monopoly - ANSWER D. Pure, imperfect and monopoly Price fixing, bid rigging and restraints of trade are prohibited by this first of its kind federal act. A. Federal Trade Commission B. Adam Clayton Powell Act C. Sherman Anti-Trust Act D. Robinson-Patman Act - ANSWER C. Sherman Anti-Trust Act Statutes, ordinances, charters, rules, regulations, policies and procedures are all examples of: A. Administrative law B. Legislative law C. Enabling legislation D. Contract terms and conditions - ANSWER B. Legislative law A contract administrator's duties are normally performed by: A. A hired consultant. B. An employee within the agency. C. A contract manager from a nearby agency. D. The purchasing department manager. - ANSWER B. An employee within the agency. Sole source, single source and emergency procurements are examples of: A. The best ways of procuring goods and services. B. Non-competitive methods of procuring goods and services. C. Unauthorized procurement methods. D. Procurement methods of questionable value. - ANSWER B. Non-competitive methods of procuring goods and services Language that covers changes, disputes and breach procedures is included in agreements between parties to protect against: A. Surety risk B. Contractual risk C. Cancellation risk D. Proposal risk - ANSWER B. Contractual risk Your agency's procurement manager has asked you to recommend an approach to an upcoming procurement for drug addiction counseling services. Which of the following possibilities would you put forward as the best approach? A. Develop a detailed specification as to how the contractor must provide the services B. Issue national standards for drug addiction counseling services to all potential respondents C. Work with the using department to develop performance measures you will use to ensure that the contractor meets the needs of the using department. D. Ask the using department for a list of drug addiction counseling protocols that they would be comfortable with. - ANSWER C. Work with the using department to develop performance measures you will use to ensure that the contractor meets the needs of the using department. You've just posted/announced the award of a solicitation. Governing body approval is pending and someone calls/writes/emails to protest. Walk me through the steps to resolve the issue. Note: it doesn't matter if your agency has a policy or not. - ANSWER Review of protest issues by the procurement authority and the user Deny or uphold the protest If denied, appeal to a next higher authority Appeal to agency chief executive or the governing board of the agency Decision by governing board or higher authority is final File a civil action asking for an injunctive relief Given the economic and political environment in which most agencies must operate, what is the most effective structure for governmental procurement agencies? A. Providing a completely centralized workforce. B. Delegating unwanted responsibilities to using agencies. C. Establishing a combination of centralized and decentralized operations. D. Establishing an ad hoc decentralized process. - ANSWER C. Establishing a combination of centralized and decentralized operations. A company has formally requested a debriefing on why it was not awarded the contract to provide multi-media advertising services. How will the procurement professional prepare for this meeting? A. Prepare a spreadsheet showing the scores and ranks of all of the proposals to provide to the company. B. Make copies of all the scores sheets for the company. C. Prepare a point by point comparison of the company's proposal with all of the other proposals. D. Prepare a listing of the significant strengths and weakness of the company's submitted proposal. - ANSWER D. Prepare a listing of the significant strengths and weakness of the company's submitted proposal. A good bid specification does all of the following except: A. Allow the vendor to choose which requirements he will meet. B. Identify the minimum requirements. C. Allow for maximum competition. D. Identify testing methods to determine compliance. - ANSWER A. Allow the vendor to choose which requirements he will meet. Name three ways of disposing of surplus agency property. - ANSWER Ways to dispose of surplus agency property include: homeless use negotiated sales public sales based on GSA's determination of the property's highest and best use The service contract to provide transportation for seniors will expire within thirty calendar days. The human services department is requesting that the contract be renewed at the same prices, terms, and conditions for an additional year because the provider has delivered exceptional service. You review the contract and advise the department that the contract cannot be renewed. What is the basis for denying the renewal? A. No performance evaluations have been completed on the contractor. B. Service segmentation of needed transportation services is being discussed by the agency. C. No contract renewal clause is included in the original contract. D. No transportation master plan is included in the statement of work. - ANSWER C. No contract renewal clause is included in the original contract. What is outsourcing? Name something good or bad about it. - ANSWER Outsourcing is when an organization contracts outside of the organization for a product, service, or business process that had previously been provided internally. Outsourcing benefit include cost savings by the contractor being able to provide the benefits of economies of scale. Outsourcing disadvantage include losing key skills and equipment by the organization being too dependent on the contractor. Indemnification, workers' compensation insurance and bonds are examples of things we include in our solicitations and contracts to deal with what type of risk? A. Proposal B. Surety C. Schedule D. Contractual - ANSWER B. Surety What's the difference between a partial payment and a progress payment? - ANSWER Partial payment is used to allow the contractor to invoice the government upon delivery and acceptance of partial deliveries of goods or performance of services. Progress payments assure acceptable performance and progress on a contract. Commensurate with the progress made on the contract and are a method for financing the contractor throughout the life of the contract. The benefit of using a fixed-price with escalation contract would be: A. The vendor is protected against unusual price increases. B. The buyer has less contract administration to deal with. C. The vendor has increased contract risk and the buyer has decreased contract risk. D. The buyer can change the escalation indexation at any time during the contract. - ANSWER A. The vendor is protected against unusual price increases. The ABA Model Procurement Code lists six methods of source selection. Name any three of them. Extra credit for all six. - ANSWER Methods of source selection include: · competitive sealed bidding · competitive sealed proposals · small purchase procedures · sole source procurement · emergency procurements · competitive selection procedure for designated types of services The extent to which the procurement function provided the needed goods and services within acceptable quality standards is known as: A. Efficiency B. Effectiveness C. Procedural compliance D. Economy - ANSWER B. Effectiveness The agency has just awarded a contract for cleaning services in the headquarters building. It is very important that the cleaning be done in a professional manner since this is a high visibility area and receives a lot of the senior staff traffic throughout the day. The contract was very detailed as to the standards to be met. What can the Contract Administrator include in the performance assessment plan to ensure compliance with the performance standards? A. Value analysis B. Surveillance techniques C. Progress meetings D. Final inspections - ANSWER B. Surveillance techniques Name three basic types of files that should be maintained by a procurement office. - ANSWER · Solicitation Files (award documents, evaluation documents, solicitation, etc.) · Contract Files (executed contract, required bonds, insurance certificates, etc.) · Personnel Files Several divisions within a government entity purchase equipment to do similar work. Each division has its favorite type of equipment. What process would increase efficiency and savings across the divisions? A. Use of p-cards B. Cooperative purchasing C. Standardization D. Bench-marking - ANSWER C. Standardization Indemnification clauses are added to our terms and conditions to protect the agency from: A. The acts of the vendor B. The acts of the agency C. The acts of third parties D. The acts of our customers - ANSWER A. The acts of the vendor Name two methods or things to consider in dealing with tie low bids, both of which are responsive and responsible. - ANSWER Two things to consider in dealing with tie low bids are small business concerns that are also labor surplus area concerns, local preference, if they are still equal drawing by lot. Under which of the following does the agency own the goods in transit? A. FOB destination, freight collect B. FOB destination, freight prepaid and added C. FOB destination, freight prepaid and allowed D. FOB origin - ANSWER D. FOB origin Other than rules, regulations, policies and procedures, name at least three specific things that should be found in a procurement manual. - ANSWER Duties of staff Signing authorities Guidelines on receiving and inspection Agencies not following their process, lack of clarity in bid documents and a perception of not being fair are some of the reasons vendors give for: A. Not registering with the agency B. Not responding to solicitations C. Ignoring phone calls and emails D. Filing protests of awards - ANSWER D. Filing protests of awards A warehouse manager received a bill charging him $200 related to demurrage. What is demurrage and/or why did he get charged? - ANSWER Demurrage is a fee charged by a carrier against a consignee, consignor, or other responsible party to compensate for the detention of the carrier's equipment in excess of allowable free time for loading, unloading, re-consigning, or stopping in transit. The term is also used by suppliers of material delivered in a variety of returnable containers, such as gas cylinders, rail containers and equipment. Program budgets: A. Relate expenditures and revenues to each other. B. Relate expenditures and revenues to public goals. C. Relate expenditures and revenues to workloads. D. Relate expenditures and revenues to line item accounts. - ANSWER B. Relate expenditures and revenues to public goals. Please put these items in their normal, proper sequence (not your agency's): Addendum; Closing date; draft solicitation review by department; short-listing; Board/commission approval of award; oral presentations by vendors. Extra credit: what kind of solicitation is being discussed here? - ANSWER Draft solicitation review by department Addendum Closing date Short-listing Oral presentations by vendors Board/commission approval of award Extra Credit: The solicitation being discussed is a Request for Proposals (RFP) Under the Uniform Commercial Code, the failure of a seller to deliver contracted goods would allow the buyer to: A. Obtain them from the next lowest bidder. B. Obtain them at the current market price and charge the seller the difference. C. Cancel the contract and rebid. D. Invoke liquidated damages. - ANSWER B. Obtain them at the current market price and charge the seller the difference. The four types of fixed price contracts are: A. Firm, percentage, incentive and escalation. B. Firm, escalation, incentive and redetermination. C. Percentage, escalation, redetermination and firm. D. Cost sharing, escalation, incentive and percentage. - ANSWER B. Firm, escalation, incentive and redetermination. A solicitation document currently on the street contains a clause that has been revised by an addendum, which then turns out to be incorrect. What happens if the bid opening date hasn't occurred yet? What happens if the bids have been opened? - ANSWER If the bid opening date hasn't occurred yet I would do another addendum with the correct information. If the bids have been opened I would cancel the solicitation and re-issue with the correct information. Some agencies provide monetary assistance to qualified citizens by the use of smart cards. What is a smart card and how does it work? - ANSWER A smart card is an electronic wallet with an embedded chip that stores data including an individual's complete personnel and medical records. A buyer is charged with purchasing diesel fuel for a transit system. What type of study should be conducted to determine how best to make this purchase? A. Value analysis B. Vendor selection C. Demand analysis D. Market analysis - ANSWER D. Market analysis Careless County recently lost an important court case in the State Supreme Court. The court decision will now impact every county in the state, and the decision may be used to argue other cases as well in other jurisdictions in the future. The type of law developed through court case decisions is known as: A. Administrative Law B. Statutory Law C. Common Law D. Contract Enforcement Law - ANSWER C. Common Law Explain the difference between general and special terms and conditions in a solicitation document. - ANSWER General terms in solicitation are the standard clauses (boilerplate). Special terms in a solicitation are specific to the solicitation. Which is a true statement about Life Cycle Costing? A. Done correctly, will result in a lower acquisition price B. Is synonymous with the total cost of ownership C. Includes operating and maintenance costs but does not reflect disposal costs D. Focuses on maintenance costs - ANSWER B. Is synonymous with the total cost of ownership Procurement Director to buyer: "The mayor just called and he wants the Hansen project expedited. Take care of it." Buyer to Hansen contractor: "How's it going?" Hansen contractor: "Great. Everything's going well and delivery is on schedule." Buyer: "Glad to hear it. I'll check back with you again in a week or