CPSM EXAM 1 STUDY GUIDE UPDATED QUESTIONS AND
VERIFIED ANSWERS
Pre-Solicitation Conference - CORRECT ANSWER✅✅✅-Reviews specs with potential vendors PRIOR
to issuing solicitation documents
-Focus on refining requirements
-best course of action for organizations that desires to obtain suggested changes/additions to its
preliminary specs from potential suppliers
Pre-Bid Conference - CORRECT ANSWER✅✅✅-held to clarify already-issued specs with vendors
Two-Step Bidding - CORRECT ANSWER✅✅✅the process of evaluating technical responses first then
cost
Informal bids/quotations - CORRECT ANSWER✅✅✅procurement below established monetary
thresholds or to responses requested for budgetary purposes
Specific Duty - CORRECT ANSWER✅✅✅tariff rate assessed on the number of units of an imported
good
Ad velorem Duty - CORRECT ANSWER✅✅✅a customs duty charged based on the value of goods,
expressed as a % of that value
Value-added Tax - CORRECT ANSWER✅✅✅based on the value added at each stage of a products
production or distribution
Goods and Services Tax - CORRECT ANSWER✅✅✅similar to value-added but applies to both goods
and services
Limited Competition - CORRECT ANSWER✅✅✅exists on a national scale when only a few sources
sell items that are in demand or locally if only two or three suppliers exist and they copy each other in
pricing behavior
VERIFIED ANSWERS
Pre-Solicitation Conference - CORRECT ANSWER✅✅✅-Reviews specs with potential vendors PRIOR
to issuing solicitation documents
-Focus on refining requirements
-best course of action for organizations that desires to obtain suggested changes/additions to its
preliminary specs from potential suppliers
Pre-Bid Conference - CORRECT ANSWER✅✅✅-held to clarify already-issued specs with vendors
Two-Step Bidding - CORRECT ANSWER✅✅✅the process of evaluating technical responses first then
cost
Informal bids/quotations - CORRECT ANSWER✅✅✅procurement below established monetary
thresholds or to responses requested for budgetary purposes
Specific Duty - CORRECT ANSWER✅✅✅tariff rate assessed on the number of units of an imported
good
Ad velorem Duty - CORRECT ANSWER✅✅✅a customs duty charged based on the value of goods,
expressed as a % of that value
Value-added Tax - CORRECT ANSWER✅✅✅based on the value added at each stage of a products
production or distribution
Goods and Services Tax - CORRECT ANSWER✅✅✅similar to value-added but applies to both goods
and services
Limited Competition - CORRECT ANSWER✅✅✅exists on a national scale when only a few sources
sell items that are in demand or locally if only two or three suppliers exist and they copy each other in
pricing behavior
