Introduction to Public Procurement
CPPB Exam Question and Answers
Public procurement is.... - CORRECT ANSWER-The designated legal authority to
advise, plan, obtain, deliver, and evaluate a government's expenditures on goods and
services that are used to fulfill stated objectives, obligations, and activities in pursuit of
desired policy outcomes.
Materials Management... - CORRECT ANSWER-embraces all functions related to the
control and coordination of the movement of goods and maintenance, repair and
operating items to, through, and out of the organization.
May include functions such as purchasing, storage, inventory control, material
forecasting, receiving, transportation, inspection, and quality control.
Name the functions Materials Management includes... - CORRECT ANSWER-
purchasing, storage, disposal, material forecasting, inventory control, preparing
requisitions, developing specifications, receiving, quality control and inspection.
Public Procurement value-adding benefits are... - CORRECT ANSWER-quality, cost
(including total cost of ownership), service, continuity of supply, and time.
Goals of public procurement - CORRECT ANSWER-Cost
Quality
Timeliness
Managing Risk
Accomplishing Social and Economic Objectives
Maximizing Competition
Maintaining Integrity and Transparency
Cost is... - CORRECT ANSWER-The actual expenses incurred in delivering a product,
service, or construction; includes both direct and indirect costs, but does not include fee
or profit from the vendor.
Quality is.. - CORRECT ANSWER-1. The function of excellence, intrinsic value, or
grade as determined over time by society generally or by designated bodies in
specialized fields.
2. The composite of all attributes or characteristics, including performance, that satisfy
the user's needs.
3. Conformance with the stated requirements.
, Timeliness is... - CORRECT ANSWER-delivering the requisitioned supplies to the end-
user at the time necessary for the end-user's purposes.
Managing Risk is... - CORRECT ANSWER-the process of identification and analysis of
risk; and the decision to either accept or mitigate the exposure to such risk when
compared to the potential impact on the achievement of the organization's objectives.
Davis-Bacon and Service Contract Acts socio-economic objectives are... - CORRECT
ANSWER-pay prevailing wages for work on government contracts.
Clean Air and Clean Water Acts socio-economic objectives are... - CORRECT
ANSWER-to protect the environment.
Buy American Act socio-economic objectives are... - CORRECT ANSWER-to protect
American economy and provide employment opportunities for American workers.
Executive Orders 11141 and 11246 socio-economic objectives are... - CORRECT
ANSWER-to ensure equal employment opportunity.
Veterans Preference Act socio-economic objectives are... - CORRECT ANSWER-to
promote the hiring of veterans.
Competition is defined as... - CORRECT ANSWER-the effort of two or more vendors to
secure business of a 3rd party by the offer which has the most favorable terms as to
price, quality, promptness of delivery, and/or service. (NIGP, 2000)
Transparency is... - CORRECT ANSWER-the idea that the more information disclosed
about a business, financial or economic activity the better which improves ethical
conduct.
Integrity is... - CORRECT ANSWER-personal adherence to a strict moral or ethical code
of conduct.
What is the competition and cost tradeoff? - CORRECT ANSWER-The primary benefit
of competition is to reduce pricing. On the other hand, it is subject to diminishing
returns; the more offers the government solicits, the higher the admin costs incurred as
every offer is additional cost. Theoretically, there is an optimum benefit level of
competition for any given acquisition.
Name the 2 types of government systems. - CORRECT ANSWER-Unitary and federal.
Which branch of government is extensively involved in public procurement in the United
States unlike in the United Kingdom or Malaysia? - CORRECT ANSWER-Legislative
Branch
CPPB Exam Question and Answers
Public procurement is.... - CORRECT ANSWER-The designated legal authority to
advise, plan, obtain, deliver, and evaluate a government's expenditures on goods and
services that are used to fulfill stated objectives, obligations, and activities in pursuit of
desired policy outcomes.
Materials Management... - CORRECT ANSWER-embraces all functions related to the
control and coordination of the movement of goods and maintenance, repair and
operating items to, through, and out of the organization.
May include functions such as purchasing, storage, inventory control, material
forecasting, receiving, transportation, inspection, and quality control.
Name the functions Materials Management includes... - CORRECT ANSWER-
purchasing, storage, disposal, material forecasting, inventory control, preparing
requisitions, developing specifications, receiving, quality control and inspection.
Public Procurement value-adding benefits are... - CORRECT ANSWER-quality, cost
(including total cost of ownership), service, continuity of supply, and time.
Goals of public procurement - CORRECT ANSWER-Cost
Quality
Timeliness
Managing Risk
Accomplishing Social and Economic Objectives
Maximizing Competition
Maintaining Integrity and Transparency
Cost is... - CORRECT ANSWER-The actual expenses incurred in delivering a product,
service, or construction; includes both direct and indirect costs, but does not include fee
or profit from the vendor.
Quality is.. - CORRECT ANSWER-1. The function of excellence, intrinsic value, or
grade as determined over time by society generally or by designated bodies in
specialized fields.
2. The composite of all attributes or characteristics, including performance, that satisfy
the user's needs.
3. Conformance with the stated requirements.
, Timeliness is... - CORRECT ANSWER-delivering the requisitioned supplies to the end-
user at the time necessary for the end-user's purposes.
Managing Risk is... - CORRECT ANSWER-the process of identification and analysis of
risk; and the decision to either accept or mitigate the exposure to such risk when
compared to the potential impact on the achievement of the organization's objectives.
Davis-Bacon and Service Contract Acts socio-economic objectives are... - CORRECT
ANSWER-pay prevailing wages for work on government contracts.
Clean Air and Clean Water Acts socio-economic objectives are... - CORRECT
ANSWER-to protect the environment.
Buy American Act socio-economic objectives are... - CORRECT ANSWER-to protect
American economy and provide employment opportunities for American workers.
Executive Orders 11141 and 11246 socio-economic objectives are... - CORRECT
ANSWER-to ensure equal employment opportunity.
Veterans Preference Act socio-economic objectives are... - CORRECT ANSWER-to
promote the hiring of veterans.
Competition is defined as... - CORRECT ANSWER-the effort of two or more vendors to
secure business of a 3rd party by the offer which has the most favorable terms as to
price, quality, promptness of delivery, and/or service. (NIGP, 2000)
Transparency is... - CORRECT ANSWER-the idea that the more information disclosed
about a business, financial or economic activity the better which improves ethical
conduct.
Integrity is... - CORRECT ANSWER-personal adherence to a strict moral or ethical code
of conduct.
What is the competition and cost tradeoff? - CORRECT ANSWER-The primary benefit
of competition is to reduce pricing. On the other hand, it is subject to diminishing
returns; the more offers the government solicits, the higher the admin costs incurred as
every offer is additional cost. Theoretically, there is an optimum benefit level of
competition for any given acquisition.
Name the 2 types of government systems. - CORRECT ANSWER-Unitary and federal.
Which branch of government is extensively involved in public procurement in the United
States unlike in the United Kingdom or Malaysia? - CORRECT ANSWER-Legislative
Branch
