CPPB Prep Guide Questions With Correct Answers

An entity purchases several different types of mobile phones to meet employees' preferences. This is causing inefficiencies. What action can be taken to address and correct the inefficiencies? A. creation of performance specifications B. sole sourcing C. benchmarking D. standardization - Answer standardization A buyer has been invited to join a supplier account rep for lunch to discuss the performance of a contract. How should the buyer respond to the invitation? A. decline the supplier's offer and suggest a meeting in the office B. join the supplier for lunch, but pay for himself C. ask the end user to join the supplier and the buyer for lunch anc count it as a business meeting D. report the supplier to the supervisor - Answer decline the supplier's offer and suggest a meeting in the office A buyer has been working on a solicitation for several days. Now the end users have requested that the buyer mail the bid only to local suppliers. How should the buyer respond to this request? Add language to the bid that only local suppliers can submit proposals B. explain that agency procedures require that all bids be electronically posted to allow for open and fair competition C. explain that he can only put "Buy America" language in bid specifications - Answer explain that agency procedures require that all bids be electronically posted to allow for open and fair competition The ratio between inputs such as staff hours or salary and outputs is a way of measuring what attribute? A. efficiency B. effectiveness C. contributions D. progress - Answer efficiency Legislation enacting a sustainable procurement initiative was passed during this legislative session. The agency has a limited staff and resources with which to implement the legislation. What type of program would be most easily implemented? A. alternative fuel vehicles B. energy efficient equipment C. recycled paper D. comprehensive recycling program - Answer recycled paper At an entity hosted small business educational and outreach workshop, the entity small business program coordinator noticed that only a few suppliers are actively participating in asking questions and discussion. In reaction, she works diligently to engage other suppliers who are not contributing. What role is she assuming? A. encourager B. observer C. information seeker D. gate keeper - Answer gate keeper The city's IT dept has a need to purchase 20 copies of a how-to-use over-the-counter software book for various user departments within the agency. The book is commonly available and it is estimated that the total cost would be $900, which is below the established bid threshold. The buyer has confirmed that the book is not currently on any agency contracts. Which type of purchase is considered most economical in this case? A. emergency B. sole source C. pcard D. invitation for bids - Answer pcard A buyer wishes to enter into a cooperative purchase with a regional alliance that could save a great deal of money. What is the buyer's first step? A. Determine if there is legal authority to do this B. Determine if the cost is advantageous C. Determine if local suppliers are impacted D. Determine if your terms and conditions are in compliance - Answer determine if there is legal authority to do this While on vacation the Chief Procurement Officer left a Procurement Manager in charge of operations via an interoffice memo. The Procurement Manager was faced with an emergency purchase that needed signature for $50K. What gives him the authority to sign for this emergency purchase? A. apparent authority B. express authority C. the Procurement Manager has authority to sign because it is an emergency purchase D. implied authority - Answer express authority An agency with a local small business preference program is accepting bids for a roofing project. Only Company C is in the local jurisdiction. Businesses located outside the local jurisdiction will have 5% of the bid amount added to their total bid amount. Company A bids $49,300. Company B bids $49,150. Company C bids $51,650. Company D bids $51,640. Which company should receive the award based on total low bid? - Answer B $49,150 When all mandatory requirements of a bid are met, what is the value of competitive quotes and competitive sealed bids? A. drives a decision based on price B. provides evaluation guidelines on which to base the award C. provides a reliable indicator of a robust supplier market D. it has no value - Answer drives a decision based on price What is the purpose of a cost analysis? A. compares each price quoted the entity as a result of the bid process B. an attempt to protect reasonable cost in a cost benefit analysis C. helps determine the supplier's costs actually incurred for the nonstandard items D. helps determine functional requirements at the lowest possible cost without impacting need and suitability - Answer helps determine the supplier's costs actually incurred for the nonstandard items The Sherriff's Dept is planning on acquiring a scanner to be used on work release inmates entering and leaving the jail. The scanner will have a lifespan of 10 years. The price for the scanner is $11,000. Maintenance must be performed on this machine monthly to ensure accuracy. Monthly maintenance will be $150. What is the life cycle cost for this entire purchase? A. $11,000 B. $29,000 C. $18,000 D. $36,000 - Answer $29,000 Dept of Water Resources is preparing a bid document for a new and complex composite water meter. What action should the buyer take to better ensure responsive bids? A. use brand name or equivalent specifications B. determine the industry standards for meter suppliers C. determine the life cycle cost of the meter D. schedule a pre-bid conference - Answer schedule a pre-bid conference An agency is deciding whether to purchase new or used riding mowers. What is the most appropriate analysis method to use to make this decision? A. historical price analysis B. life cycle cost analysis C. cost analysis D. price analysis - Answer life cycle cost analysis Five entity owned buildings are under renovation and the parts of these renovations incude replacing the flooring. Each building has an estimated 4400 sq ft of floor surface that will require new flooring. 65% will be tile and 35% will be hardwood. If the tile is $8.00 per sq ft for the supply and install, what is the estimated cost of this project? A. $39,820 B. $418,000 C. $218,900 D. $199,100 - Answer $199,100 The Sherriff's Dept is requesting that a solicitation be put out for commissary items for the county jail. To assist in maintaining order and for the safety of county employees and the inmates, the dept is providing the buyer with a list of specific items to be procured. Little to no deviation from this list will be allowed. Under the circumstances, what is the most appropriate type of specifications taht the buyer should use? A. combination B. design C. brand name or approved equal D. performance - Answer brand name or approved A Dept Manager has requested that the Procurement Dept issue a request for bids for their yearly supply of pipe and fittings. The buyer researched the market and found pricing for pipe and fittings remained relatively stable. What type of contract should the buyer recommend? A. definite quantity term contract B. spot purchase C. time and materials contract D. term contract - Answer definite quantity term contract The Corrections Dept has a budget of $1,000,000 annually for the purchase of frozen vegetables. The buyer will issue an invitation for bids. How should the budget value be handled in the solicitation? A. should be included to help the bidders understand their effort or quality B. should be included to create a level playing field which enhances the quality and competitiveness of responses C. it is nonessential information for formulating a bid for this type of procurement D. including the budget will tend to push up the bid values - Answer should be included to create a level playing field which enhances the quality and competitiveness of responses An agency issued an invitation to tender with the lowest responsive and responsible bidder as criteria for award. Four contractors submitted bids. The low bidder was a contractor with whom the entity had documented performance issues in the past. The last contract had ended with a show cause letter for poor performance when the contract term ended. What would be the most appropriate step for the entity to take to ensure the project will be completed on time and within budget? A. bypass the low bid and award to the next responsive and responsible bidder B. conduct a post award startup and conference C. conduct a briefing D. issue a conditional award subject to contractor submitting a larger performance bond than originally requested - Answer conduct a post award startup and conference The procurement professional was tasked with organizing a negotiation with a new contractor for a long term contract for the supply of widgets. Neither side will budge on some moderate issues. What planning activity could the official have put more effort into to avoid this impasse? A. conducting a mock negotiation B. analyzing the other side's tactics C. generating a variety of options D. designing optimal solutions - Answer generating a variety of options During the negotiation, it may be necessary to do which of the following? A. hide your intentions from the other team B. rigidly adhere to specific details C. anticipate the other party's tactics and plan counter-tactics D. adjourn and conduct brainstorming sessions to develop team options - Answer anticipate the other party's tactics and plan counter-tactics A buyer is meeting with a new supplier for the first time to begin negotiating a maintenance contract for the company's products and equipment. What key items should the buyer cover with the supplier? A. terms and conditions of that contract B. agency procedures C. supplier handbook D. contractual terms and the supplier guidelines developed by the entity - Answer contractual terms and the supplier guidelines developed by the entity What is the responsibility of a procurement professional when conducting a negotiation? A. achieve the agency's expected results at all costs B. document, record and acknowledge each step of the process C. ensure that all members of the negotiation team have rehearsed strategies and roles D. ensure that the other party has a comfortable and amiable negotiation environment - Answer document, record and acknowledge each step of the process On what are good negotiated agreements based? A. the interests of both parties B. a balance of powers C. the position of both parties D. good friendships between both parties - Answer the interests of both parties The agency team is anticipating a tough negotiation. What action should they take to ensure that they are protecting themselves from making a bad agreement? A. conduct a mock negotiation B. establish a bottom line C. develop a BATNA D. bring in a mediator - Answer develop a BATNA A team is trying to reach an amicable agreement with a supplier. On what should they focus? A. the positions of both sides B. mutual interests C. the bottom line D. the problem - Answer mutual interests An agency is about to enter the negotiation of a complex agreement. What guidelines should be used to choose the team? A. high profile managers who will stand up to the other side B. a team member to match each of the members on the other side's team C. a team of lawyers and financial analysis D. those who have essential skills and knowledge relevant to the negotiation - Answer those who have essential skills and knowledge relevant to the negotiation What signals the completion of the negotiation? A. an agreement reached at the negotiation table B. a written and executed contract C. finalized negotiation documentation D. selection of the type of contract to be used - Answer a written and executed contract After the negotiation team is chosen what important preparatory step should be taken next? A. establish the ground rules B. conduct a mock negotiation C. agree on the goal of the negotiation D. determine who will document the negotiation - Answer establish the ground rules A contractor has appealed a decision rendered by the authorities. What determines if the contractor must continue working? A. contract termination clause B. contract terms and conditions C. contractor's scope of work D. request for equitable adjustment (REA) - Answer contract terms and conditions An agency's warehouse operator received a shipment of 50 boxes of screws. After a cursory expection, the operator begins using the screws immediately. After using about twenty of the screws over the next two days, the operator is disturbed by the fact that 8 of the 20 screws used, cracked after about six hours of use. At that point, the operator started to inspect the remaining boxes and realized that several screws in each box appeared to have a crack or had what looked dlike a weak spot in the middle, concluding that the screws were defective. The operator calls the seller and lets him know he is revoking acceptance of the shipment. The seller says he cannot revoke the shipment because the goods were accepted 2 days ago. Legally, what is the best explanation of this situation? A. Within a reasonable amount of time, the agency has a right to revoke acceptance when they become aware of a latent defect. B. Because the - Answer within a reasonable amount of time, the agency has a right to revoke acceptance when they become aware of a latent defent An award for a large construction contract has been made and the post-award conference has taken place. What should the contract office do next? A. make sure the contractor understands the technical requirements B. produce a formal report summarizing the major issues and identify issues not resolved C. discuss payment proceedings D. schedule a follow up meeting to monitor performance - Answer produce a formal report summarizing the major issues and identify issues not resolved An agency purchases color toner for their printers from a supplier through a bid process. The delivery of the toner has been an issue and recently the cartridges have been malfunctioning in the printers. What should the buyer do first? A. terminate the contract for non-performance B. document the performance in the supplier file and notify the supplier for corrective action C. purchase the toner from the next low bidder D. finish the contract and remove the supplier from the next bid - Answer document the performance in the supplier file and notify the supplier for corrective action A buyer was informed that the roof of a new building delivered for official occupancy six months ago was leaking. A third party roof engineer hired by the agency determined that the leaking was due to the inconsistent mil thickness of the roofing membrane material. The buyer can request the roofing manufacturer to compensate them for what reason? A. latent defect B. patent defect C. substantial completion D. acceptance of minor nonconformities - Answer latent defect A contract is issued for a road resurfacing project. The contractor commences the work but after a day, phones the buyer to say that the project will be delayed. The contractor states the specifications were not accurate and there is a requirement to add aggregate to raise the road level. What is the buyer's first step? A. issue a purchase order for the additional aggregate B. phone the project authority to find out when the contractor started C. contact the legal dept D. review the contract with the project authority and the contractor to determine the problem - Answer review the contract with the project authority and the contractor to determine the problem The county has contracted with a band to perform at the state fair. The band must arrive two days prior to the concert date to prepare. Five days prior to when the band was to arrive, the county experienced a severe storm that caused major damage to the stage. As a result, the band had to find and secure, at their expense, another local location for one day to practice for their show. What change must the county make to the band's contract? A. complete a change order to allow for the change B. move the concert to another venue C. make a reasonable equitable adjustment D. delete a day of work from the band's contract - Answer make a reasonable equitable adjustment An agency is dealing with the poor performance of one of its contractors. The building manager tried to resolve the problem with the on-site supervisor, buy there was no change. What is the next step the agency should take? A. terminate the contract for poor performance B. contact legal representative for breach of contract C. contact the on-site supervisor again to work on the issues D. contact the contractor to resolve the issues - Answer contact the contractor to resolve the issues An agency hired an architect through a competitive process to design a new civic center. After the conceptual design was approved, the agency's council pushed the project back five years due to a recession. If language in the contract permitted it, what would be the most likely step for the agency? A. termination for cause B. termination for convenience C. declare force majeure and terminate the contract D. suspend the contract until funds are available - Answer termination for convenience The operation of a municipal owned campground is licensed to ABC Corporation. After contract execution it was discovered that the address of the corporation listed for notices was incorrect. What type of contract modification would most likely be used? A. bilateral modification B. change order C. amendment D. unilateral modification - Answer amendment The loading dock crew at an entity warehouse took receipt of a shipment from a supplier. One day later the shipment was inspected and damaged goods were identified. When the supplier was notified they claimed that the entity had accepted the goods and that they (the supplier) were no longer responsible. What should the entity do first? A. immediately return the damaged goods to the supplier B. contact the user department to see if they will accept the damaged goods C. remind the supplier that taking receipt of a shipment is not the same as accepting a shipment D. find another supplier and break the contract with this supplier - Answer remind the supplier that taking receipt of a shipment is not the same as accepting a shipment New kitchen equipment in the Governor's residence kitchen was competitively bid, awarded and the order for the equipment has been placed. The Director of General Services discovered that the Governor and First Lady will be out of residence for the next three weeks. Knowing it would be easier for the Genral Services staff to install the equipment with the Governor and First Lady away, the Director calls her procurement officer to see if anything can be done to move the installation forward. What should the procurement officer do? A. call the supplier to see if the order can be expedited B. cancel the order and buy the equipment locally C. go forward with the project as it is currently scheduled in the contract documents D. review the order acknowledgment to check on the estimated ship date of the equipment - Answer call the supplier to see if the order can be expedited The buyer contacts Widgets-R-Us to see if an item can be shipped sooner than what had been originally contractually agreed upon. The supplier states they can deliver in one week. What should the buyer do? A. thank the supplier and wait for the delivery to arrive B. notify the ordering dept that the items will arrive in one week C. send the supplier an amended purchase order to accept D. cancel the delivery - Answer send the supplier an amended purchase order to accept A buyer ordered books from a contracted supplier, which would be used by students when school begins in two months. The following Monday, she received confirmation from the contractor confirming that the books have been received by the shipping company; however on Tuesday, she is notified that the delivery is currently delayed because the shipping company is experiencing a strike by its drivers. What would be the buyer's best response to this situation? A. demand the contractor ship more books with a different carrier in order to meet the delivery parameters set forth in the contractual agreement B. declare this delay unforeseeable and allow the contractor a reasonable amount of additional time for delivery C. declare this delay as grounds for default and issue a cure letter to the contractor D. refer to tort law and procedures in her jurisdiction - Answer declare this delay unforeseeable and allow the contractor a reasonable amount of additional time for delivery The statewide master contract for furniture systems requires that the supplier maintain safety stock levels that can accommodate the state's anticipated short-notice requirements due to lack of warehouse space in remote areas of the state. What type of inventory management is this? A. first in, first out B. min/max levels C. last in, first out D. just in time - Answer min/max levels While conducting post award activities, the procurement staff realizes that the delivery schedule is lagging behind. What should the buyer do to avoid problems with the delivery requirements? A. expedite the deliveries B. remind the supplier of the performance risk clause C. follow up with the supplier D. enact quality assurance steps - Answer follow up with the supplier What action should always be taken when an order is delinquent? A. document it B. investigate it C. protest it D. accept it - Answer document it Good inventory management focuses on what goal? A. providing internal customers with as many different choices as possible B. eventually discontinuing all goods maintained in inventory C. minimizing expenses while maximizing supplies D. shifting all supplies to just-in-time management - Answer minimizing expenses while maximizing supplies The O-rings used with hydraulic cylinder pistons have a shelf life of 2 years. What inventory methodology should the agency's warehouse use to issue these rings? A. LIFO B. FIFO C. JIT D. Procurement cards - Answer FIFO Special chemical-resistant valves for the waste water treatment plant would be classified as what type of item? A. Class A B. Class B C. Class C D. Unclassified - Answer Class A What can a buyer learn from looking at an entity's strategic plan? A. how to respond to political changes B. guidance in handling a current crisis C. how to respond to technology changes D. the allocation of procurement resources - Answer the allocation of procurement resources An entity in Canada wishes to forecast its use of indoor and outdoor pool facility chemicals. Which of the following methods best depicts the usage trends? A. fixed period method B. first in, first out C. weighted moving average method D. economic ordering quantity method - Answer weighted moving average method A buyer is responsible for the purchase of diesel fuel. In order to best meet this agency's needs, what must the buyer do? A. conduct time series forecasts to better predict future costs B. constantly research and scan the market for changes and trends C. conduct a cost/benefit analysis of potential acquisition methods D. determine when and where to curtail expenditures in the event of revenue shortfalls - Answer constantly research and scan the market for changes and trends A customer department is trying to determine what office equipment they need versus what would be nice to have. What type of analysis should be conducted to address this situation? A. conduct a total cost of owernship analysis B. conduct a cost analysis C. conduct a value analysis D. conduct a spend analysis - Answer conduct a value analysis The Chief Procurement Officer for a jurisdiction announces that she will be retiring 3 years from now. What is the BEST next step the jurisdiction should take to ensure a smooth transition for this role? A. identify a current, qualified employee interested in advancement to this position B. provide horizontal training opportunities to all procurement employees C. establish a succession plan structure for the jurisdiction D. schedule retraining sessions for all employees - Answer establish a succession plan structure for the jurisdiction If a govt entity wants to determine how many reams of printer paper to carry in inventory, accurate records of which of the following data is required? A. the number of types of reams that were drawn from inventory last year B. the average increase in price of reams of paper over the past 12 months C. the weekly number of reams of paper type issued for the last 52 weeks D. the number of stock-outs of paper last year - Answer the weekly number of reams of paper type issued for the last 52 weeks Which type of market condition would likely prompt a spot bid? A. political turmoil in the area from which a commodity is purchased? B. history of price fluctuation demonstrates a stable market C. level and nature of competition within the supplier community is consistent D. alternative or substitute products are readily available - Answer political turmoil in the area from which a commodity is purchased The plan describes an objective in detail, specifies the outcome, when it should be finished and its chance of success. Which objective attribute is missing? A. realistic B. assignable C. measurable D. time-related - Answer assignable What step should an agency take after a disaster to ensure continuous improvement of its Continuity of Operations Plan? A. conduct a final accounting of all disaster related expenses B. confirm completion of all required documentation C. confirm that the agency level COOP was aligned with the jurisdictional COOP D. conduct an after action review - Answer conduct an after action review A jurisdiction is in the initial phase of developing a strategic sourcing strategy across all departments. So far, the purchase history of each department for the past fiscal year has been compiled into one database. What is the BEST next step for the jurisdiction? A. generate a Procurement Profile B. gather 2 additional years of purchase history from each department C. begin analyzing the departments' spending patterns D. assess risk levels for each expenditure category - Answer gather 2 additional years of purchase history from each department Procurement Technology - Answer Helps accelerate business improvements Results Oriented Budgeting - Answer Attempts to link a resource allocation to performance criteria Budget Cycle - Answer 1. Planning 2. Formalization 3. implementation 4. evaluation Procurement Cards - Answer payment method whereby internal customers are empowered to deal directly with suppliers using a credit card Four principles of negotiation - Answer 1. separate people from the problem 2. create a variety of options before deciding which to pursue 3. focus on interests, not positions 4. use objective criteria people elements to negotiation - Answer differences of perception, emotions, communications differences of perception - Answer it is crucial for both sides to understand the other's viewpoint emotions - Answer negotiation can be a frustrating process communications - Answer negotiators may not be speaking to each other, but may simply be grandstanding for their respective constituencies establish a BATNA - Answer The Best Alternative To a Negotiated Agreement stonewalling - Answer this occurs when one side has no intention of reaching an agreement unless there is an irresistible offer. good samaritan - Answer the other side is using this technique when it acts as if it is doing you a favor or making a great sacrifice with its offer in order to put you off guard and persuade you to accept it opposition negotiation tactics - Answer stonewalling, good samaritan, take it or leave it, splitting the difference, nickel and dime, good/bad cop, pity me, piece-by-piece, total package, refusal to negotiate, status, escalating demands, divide and conquer, defense, win/win take it or leave it - Answer when the other side has made its final offer and says it will no longer negotiate splitting the difference - Answer this involves offering to cut the dollar difference in half, thus avoiding the discussion of the details of the deal nickel and dime - Answer the other side wants to negotiate each and every point good/bad cop - Answer this tactic is used to elicit feelings of sympathy and understanding in order to get concessions pity me - Answer this tactic is designed to rely on the sense of fair play and make it hard to walk away piece-by-piece - Answer this tactic is used to negotiate each item of a contract total package - Answer this tactic is used when an offer is acceptable, but one or two major elements still need to be negotiated. refusal to negotiate - Answer in this tactic the other side wants a concession even to talk status - Answer sometimes the party you are negotiating with is perceived to have a higher status, such as when the president of a company personally negotiates with a buyer. escalating demands - Answer extreme demands may be made to persuade you to lower your expectations for a final agreement. divide and conquer - Answer this is used to persuade various members of the team to accept the opposition's position defense - Answer this tactic tries to keep the other side on the defensive negotiation tactics - Answer win/win, spiraling agreements, changing of position, gathering information, making the cake bigger win/win - Answer the goal of principled negotiation is that the interests of both parties are satisfied spiraling agreements - Answer begin by reaching a minimum agreement even though it is not related to the objectives and build, bit by bit, on this first agreement changing of position - Answer formulate the proposals in a different way, without changing the final result gathering information - Answer ask for information from the other party to clarify their position making the cake bigger - Answer offer alternatives that may be agreeable to the other party, without changing the terms four activities of a price analysis - Answer 1. review the competitive prices offered 2. compare with catalog or published price data 3. compare with historical prices 4. obtain data from other jurisdictions that have procured the same product or service Conflict resolution - Answer mediation, arbitration, litigation mediation - Answer a voluntary, flexible technique used to resolve disputes arbitration - Answer a process by which a dispute between parties is presented to one or more disinterested parties for a decision whose decision the contending parties agree to accept with no further appear process.