ACTUAL Exam Questions and CORRECT
Answers
Legal and statutory requirements - CORRECT ANSWER - An agency is revising its
document retention schedule. To what should the governmental entity look for guidance?
Cooperative Contract - CORRECT ANSWER - An agency is looking into cooperative
purchasing practices. After conducting some analysis, the agency would like to "piggyback" its
purchases with other agencies that are participating in cooperative purchasing. When using a
"piggyback" method, what would the arrangement be called?
Instituting a purchase card program - CORRECT ANSWER - A governmental agency has a
threshold for small purchases of $1000 and three quotes are required above that figure. There has
been a steady increase int he number of field purchase orders, 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?
a procurement profile - CORRECT ANSWER - Can be used to determine the impact of the
expenditure patterns within a supply market
Operating Fund/Capital Fund - CORRECT ANSWER - A governmental agency processed a
purchase requisition for the purchase of direct-read water meters. Which fund should a
purchasing agent check to confirm that the money was available for this purchase?
Notify the upper management and recommend a meeting with the group's leader to discuss their
concerns - CORRECT ANSWER - The governmental agency has recently acquired a piece of
property on which an old hotel of no notable historical significance sits. The city manager wants
to perform construction on the site. A local preservation group, however, has made some
overtures that they will oppose the governmental agency's plan to demolish the hotel. The city
manger has asked the purchasing department to handle the preservation group's concerns. How
should the department proceed?
, Establishing a combination of centralized and decentralized operations - CORRECT
ANSWER - In today's economic and political environments, what is the MOST effective
structure for governmental purchasing agencies.
Remind the requester of the code restrictions on fragmenting orders - CORRECT ANSWER -
A governmental agency has a non-competition threshold that says any purchase below $5,000
does not require competition. Over a three month period a requesting user has asked a 3 separate
occasions to directly purchase without competition, products needed by the agency. On each
occasion the value of the purchase was approximately $4,500. What should the buyer do?
Market analysis - CORRECT ANSWER - A buyer is charged with purchasing diesel fuel for
the transit system. What type of study should be conducted to determine how best to make this
purchase?
Determine if the item is available in surplus stock - CORRECT ANSWER - Upon receipt a
Purchase Requisition for a small buy commodity, the first step the buyer would normally take
would be to:
Plan the change in detail so that it can be implemented in a 30-day period - CORRECT
ANSWER - The government agency is changing its performance measures from primarily
cost related measures to value-added benefits. To implement this change, the agency would want
to consider all of the following steps EXCEPT?
Cost Analysis - CORRECT ANSWER - A buyer is asked to conduct a review and evaluation
of cost data in order to determine actual costs or estimates of costs to be incurred. This process is
known as:
Call the recommended vendor for prices - CORRECT ANSWER - A governmental agency has
issued a purchase requisition to to acquire software for its finance department. Immediately upon
receiving the requisition, the buyer should do all the following EXCEPT which task?
Contact all other bidders to determine why they did not bid on the agency's requirements -
CORRECT ANSWER - A well known supplier provides milk to public school districts
throughout the state. Over the last six years, a senior buyer has been responsible for soliciting