CPPB TEST 2 Questions With Correct Answers

Fixed-Price Escalation/De-escalation - Answer The procurement officer of the governmental agency has expressed serious concerns about the number of repetitive requisitions, solicitations and purchase orders that are being processed to purchase gasoline for the organization. Every time a new order is placed, another requisition is created and the prices paid by each department are not consistent; sometimes more and sometimes less depending on competition and timing. The buyer advises that the solution would be to use what type of contract? Instituting a purchasing card program - Answer A governmental agency with a centralized procurement department has a threshold for small purchases of $1000 and three quotes are required above that figure. There has been a steady increase in the number of requisitions along with recent complaints from internal customers about it taking too long to buy what they need. Which of the following actions is most likely to have the biggest impact on reducing costs and saving time in the long run? Address with on-site supervisor/contractor - Answer A governmental agency has been having problems with a supplier's performance and ma terminate their contract with the supplier. Which of the following would be the best first step in addressing the issue with the supplier? Line Item Budget - Answer An agency uses a budget in which appropriations are approved for different classes of expenditures. Each class is broken into sub-classes against which funding for services and commodities can be applied. This budget approach maximizes control and ensures financial accountability. What type of budget is this? $268,000 - Answer The Procurement Department is considering the acquisition of 10 high volume multi-function printers at a unit cost of $20,000. The printers have and estimated useful life of 8 years and require the following annual costs per printer: Consumable Supplies $350; Electricity $150; and Maintenance $350. What is the total cost of ownership of the printers? Use the "Cure Notice" procedures and give notice of the failures to the supplier - Answer The supplier of a performance based contract that has an initial three year term with two one-year extensions upon satisfactory performance, has failed to perform in accordance with specified delivery schedules. They also do not respond to quality issues in a timely manner. The supplier has not been given formal notice of the problems. The internal user does not want the contract extended for the remaining two one-year periods, and wants to terminate the contract immediately for cause. What should the contract administrator do? Forming - Answer The members of the team are getting to know one another and learning about the knowledge and skills that each brings to th e team Issue a change order under the existing contract - Answer A supplier has completed the work identified in the specifications, but the government agency has determined that additional work is required to complete the project. What should the buyer do to get this work done. Cost avoidance - Answer A procurement department is diligent to ensure that a solicitation does not have to be cancelled and re-competed. This activity achieves what organizational goals?