Municipal Finance Administration questions and answers 2025
Define Contract Year - correct answersPeriod of 12 consecutive months following the award of a
contract
How does the municipality designate a Purchasing Agent - correct answersBy ordinance
What is the bid threshold for a municipality with a QPA - correct answers$40,000
What is the bid threshold for a municipality without a QPA - correct answers$17,500
When are the bid threshold amounts adjusted? By who? - correct answersMarch 3 of every 5th
year, by Governor in consultation with the Dept of the Treasury
Who awards contracts exceeding the bid threshold? How? - correct answersGoverning Body, by
resolution
Who are competitive bids required? - correct answersFor expenditures in excess of the bid
threshold
Can similar goods and services be split for the purpose of staying under the bid threshold? -
correct answersNo
What does the Contracts Law require as far as all contracts or purchases in excess of the formal
bid threshold - correct answersPeriodic purchase of goods and services which are single in
character and total over the formal bid threshold for a given year be bid in accordance with
formal bid requirements
,Competitive contracting can be used in lieu of what? - correct answersIn lieu of public bidding
for the procurement of specialized goods and services that are hard to specify and the price
exceed
s the bid threshold
Who can administer competitive contracting - correct answersQPA or legal counsel of
contracting unit or administrator of contracting unit
How are competitive contracts awarded - correct answersBy resolution of the GB
What does RFP stand for? What is it? - correct answersRequest for proposal. Mechanism for
competitive bidding.
Can a vendor negotiate the provisions of a proposal with a municipality - correct answersNo
How does the GB award a contract? With in how many days of the receipt of the proposal? -
correct answersBy resolution, within 60 days
Who publishes a notice in the paper summarizing the award of a contract? what does it
include? - correct answersClerk
1. Nature, duration and amount of contract
2. Name of vendor
3. Statement that resolution and written contract are on filed for inspection in M.C. office
What are authorized exceptions to the receipt of formal bids under the contracts law - correct
answersProfessional services, printing of legal briefs and documents, printing of bonds, legal
notices in newspapers, goods and services to conduct elections, expenses for travel and
conferences.
The GB may enter into a negotiated contract when. What vote is required? - correct answersOn
2 occasions, no bids were received.
, On 2 occasions it rejected bids because they were too hight or not independently arrived at. A
combination of 1 of each situation. 2/3 of FM of GB
What does the law define as emergency purchase? - correct answersSituation affecting public
heath, safety and welfare requiring immediate delivery of supplies and goods and/or
performance of work or service.
What happens if at a bid opening tie bids are received? - correct answersThe contracting unit
may award contract to vendor whose price and other factors are most advantageous. The award
or PO must explain why.
What are extraordinary unspecifiable services? - correct answersServices which are specialized
and qualitative in nature requiring expertise or extensive training.
How are EUS awarded? - correct answersBy resolution of GB. Contracting agent must state in
writing that competitive quotes not practical
What is the duration of a contract? - correct answersFor any period not to exceed 24 months
What is the duration of a professional services contract?q - correct answersNot to exceed 12
months
Can bids be received after the designated time? - correct answersNo
How are bids handled that fail to comply with the procedural requirements? - correct
answersNot returned to bidder until official action has been taken by GB.
What has the power to formally award a contract or reject all bids? - correct answersGB
What are the reasons bid can be rejected - correct answersLowest bid exceeds cost estimates
GB decides to abandon project
Define Contract Year - correct answersPeriod of 12 consecutive months following the award of a
contract
How does the municipality designate a Purchasing Agent - correct answersBy ordinance
What is the bid threshold for a municipality with a QPA - correct answers$40,000
What is the bid threshold for a municipality without a QPA - correct answers$17,500
When are the bid threshold amounts adjusted? By who? - correct answersMarch 3 of every 5th
year, by Governor in consultation with the Dept of the Treasury
Who awards contracts exceeding the bid threshold? How? - correct answersGoverning Body, by
resolution
Who are competitive bids required? - correct answersFor expenditures in excess of the bid
threshold
Can similar goods and services be split for the purpose of staying under the bid threshold? -
correct answersNo
What does the Contracts Law require as far as all contracts or purchases in excess of the formal
bid threshold - correct answersPeriodic purchase of goods and services which are single in
character and total over the formal bid threshold for a given year be bid in accordance with
formal bid requirements
,Competitive contracting can be used in lieu of what? - correct answersIn lieu of public bidding
for the procurement of specialized goods and services that are hard to specify and the price
exceed
s the bid threshold
Who can administer competitive contracting - correct answersQPA or legal counsel of
contracting unit or administrator of contracting unit
How are competitive contracts awarded - correct answersBy resolution of the GB
What does RFP stand for? What is it? - correct answersRequest for proposal. Mechanism for
competitive bidding.
Can a vendor negotiate the provisions of a proposal with a municipality - correct answersNo
How does the GB award a contract? With in how many days of the receipt of the proposal? -
correct answersBy resolution, within 60 days
Who publishes a notice in the paper summarizing the award of a contract? what does it
include? - correct answersClerk
1. Nature, duration and amount of contract
2. Name of vendor
3. Statement that resolution and written contract are on filed for inspection in M.C. office
What are authorized exceptions to the receipt of formal bids under the contracts law - correct
answersProfessional services, printing of legal briefs and documents, printing of bonds, legal
notices in newspapers, goods and services to conduct elections, expenses for travel and
conferences.
The GB may enter into a negotiated contract when. What vote is required? - correct answersOn
2 occasions, no bids were received.
, On 2 occasions it rejected bids because they were too hight or not independently arrived at. A
combination of 1 of each situation. 2/3 of FM of GB
What does the law define as emergency purchase? - correct answersSituation affecting public
heath, safety and welfare requiring immediate delivery of supplies and goods and/or
performance of work or service.
What happens if at a bid opening tie bids are received? - correct answersThe contracting unit
may award contract to vendor whose price and other factors are most advantageous. The award
or PO must explain why.
What are extraordinary unspecifiable services? - correct answersServices which are specialized
and qualitative in nature requiring expertise or extensive training.
How are EUS awarded? - correct answersBy resolution of GB. Contracting agent must state in
writing that competitive quotes not practical
What is the duration of a contract? - correct answersFor any period not to exceed 24 months
What is the duration of a professional services contract?q - correct answersNot to exceed 12
months
Can bids be received after the designated time? - correct answersNo
How are bids handled that fail to comply with the procedural requirements? - correct
answersNot returned to bidder until official action has been taken by GB.
What has the power to formally award a contract or reject all bids? - correct answersGB
What are the reasons bid can be rejected - correct answersLowest bid exceeds cost estimates
GB decides to abandon project
