PRINCIPLES OF PROCUREMENT QUESTIONS ANDS ANSWERS
FULL EXAM 2025/2026 WITH CORECT ANSERS GRADED A+
QUESTION ONE
a) Describe the contents of a bidding document for the procurement of goods,
services, and works. Use examples. (10 marks)
A bidding document typically includes the following:
1. Instructions to Bidders: Guidelines on how to prepare and submit bids.
2. Bid Data Sheet: Contains specific information for the procurement, e.g.,
deadlines and addresses.
3. Technical Specifications: Detailed requirements for goods, services, or
works (e.g., equipment size, material quality).
4. Evaluation Criteria: Details on how bids will be assessed, such as price and
quality scores.
5. Terms and Conditions: Contractual obligations such as delivery timelines
and payment terms.
6. Price Schedule Form: A template for bidders to provide their pricing.
7. Form of Bid Security: Details of required bid security (e.g., bank guarantee
or cash).
8. Contract Forms: Templates for contracts to be signed by the winning
bidder.
b) What is the role of a Bidding Evaluation Committee? (5 marks)
The Bidding Evaluation Committee:
Reviews and assesses submitted bids against evaluation criteria.
Ensures compliance with procurement regulations and standards.
Recommends the best bidder based on price, quality, and capacity.
Documents the evaluation process for transparency and accountability.
c) What are the characteristics of Public Sector Procurement? (10 marks)
1. Transparency: Open and fair processes, with clear procedures.
2. Accountability: Strict adherence to rules and documentation.
3. Value for Money: Maximizing quality and efficiency within budget.
4. Equity: Fair treatment of all suppliers, avoiding discrimination.
, 5. Regulation Compliance: Adherence to procurement laws and policies.
6. Efficiency: Timely completion of the procurement process.
7. Integrity: Avoiding corruption or conflicts of interest.
8. Sustainability: Incorporating environmental and social considerations.
d) Explain the importance of a Procurement Plan. (5 marks)
Budget Control: Ensures resources are allocated effectively.
Timeliness: Reduces delays by planning for procurement in advance.
Resource Optimization: Avoids overstocking or understocking.
Compliance: Aligns procurement with organizational policies and
regulations.
Risk Management: Identifies potential challenges early.
QUESTION TWO
a) Distinguish between Open Tender and Direct Sourcing methods. Explain
circumstances under which an organization can apply each method. (10
marks)
Open Tender:
o Publicly invites all interested bidders to compete.
o Suitable for high-value, complex procurements where competition is
essential.
o Circumstances: Government contracts or large infrastructure projects.
Direct Sourcing:
o Procurement directly from a single supplier.
o Suitable for emergencies or when only one supplier exists (e.g.,
patented products).
o Circumstances: Urgent repairs, proprietary technology, or sole-source
suppliers.
b) Define the following terms as used in procurement functions/inventory
management: (10 marks)
i) Legal Framework: The set of laws, regulations, and policies governing
procurement activities, ensuring fairness, accountability, and compliance (e.g.,
Public Procurement and Asset Disposal Act in Kenya).
FULL EXAM 2025/2026 WITH CORECT ANSERS GRADED A+
QUESTION ONE
a) Describe the contents of a bidding document for the procurement of goods,
services, and works. Use examples. (10 marks)
A bidding document typically includes the following:
1. Instructions to Bidders: Guidelines on how to prepare and submit bids.
2. Bid Data Sheet: Contains specific information for the procurement, e.g.,
deadlines and addresses.
3. Technical Specifications: Detailed requirements for goods, services, or
works (e.g., equipment size, material quality).
4. Evaluation Criteria: Details on how bids will be assessed, such as price and
quality scores.
5. Terms and Conditions: Contractual obligations such as delivery timelines
and payment terms.
6. Price Schedule Form: A template for bidders to provide their pricing.
7. Form of Bid Security: Details of required bid security (e.g., bank guarantee
or cash).
8. Contract Forms: Templates for contracts to be signed by the winning
bidder.
b) What is the role of a Bidding Evaluation Committee? (5 marks)
The Bidding Evaluation Committee:
Reviews and assesses submitted bids against evaluation criteria.
Ensures compliance with procurement regulations and standards.
Recommends the best bidder based on price, quality, and capacity.
Documents the evaluation process for transparency and accountability.
c) What are the characteristics of Public Sector Procurement? (10 marks)
1. Transparency: Open and fair processes, with clear procedures.
2. Accountability: Strict adherence to rules and documentation.
3. Value for Money: Maximizing quality and efficiency within budget.
4. Equity: Fair treatment of all suppliers, avoiding discrimination.
, 5. Regulation Compliance: Adherence to procurement laws and policies.
6. Efficiency: Timely completion of the procurement process.
7. Integrity: Avoiding corruption or conflicts of interest.
8. Sustainability: Incorporating environmental and social considerations.
d) Explain the importance of a Procurement Plan. (5 marks)
Budget Control: Ensures resources are allocated effectively.
Timeliness: Reduces delays by planning for procurement in advance.
Resource Optimization: Avoids overstocking or understocking.
Compliance: Aligns procurement with organizational policies and
regulations.
Risk Management: Identifies potential challenges early.
QUESTION TWO
a) Distinguish between Open Tender and Direct Sourcing methods. Explain
circumstances under which an organization can apply each method. (10
marks)
Open Tender:
o Publicly invites all interested bidders to compete.
o Suitable for high-value, complex procurements where competition is
essential.
o Circumstances: Government contracts or large infrastructure projects.
Direct Sourcing:
o Procurement directly from a single supplier.
o Suitable for emergencies or when only one supplier exists (e.g.,
patented products).
o Circumstances: Urgent repairs, proprietary technology, or sole-source
suppliers.
b) Define the following terms as used in procurement functions/inventory
management: (10 marks)
i) Legal Framework: The set of laws, regulations, and policies governing
procurement activities, ensuring fairness, accountability, and compliance (e.g.,
Public Procurement and Asset Disposal Act in Kenya).
