CPPB - Domain II Sourcing
Questions With Complete Solutions
Graded A+
QUESTIONS AND ANSWERS
Scope of Work. ANSWER -Typically developed by procurement to be included in the
solicitation to procure services or other more complex combinations of products and
services. Sometimes called "Performance Specification"
PWS. ANSWER -Performance Work Statement
SOO. ANSWER -Statement of Objectives
Statement of Work. ANSWER -The proposed solution by the successful proposer
responding to the Scope of Work appearing in the solicitation.
Benchmarking. ANSWER -The act of measuring a process, service or product
against the characteristics of the recognized leaders in the given area of review
IFB. ANSWER -Invitation for Bid, also known as competitive sealed bidding.
Preferred method for acquiring goods, some services and some construction for public
use. Award is made to the lowest responsive and responsible bidder.
RFQ. ANSWER -Request for quotation. Also known as informal competitive
bidding. Generally used for small orders under a certain dollar threshold.
,RFP. ANSWER -Request for Proposals. Allows the reviewer or evaluator to consider
factors other than price
ITN. ANSWER -Invitation to Negotiate. Used when the procurement authority
deems it is in their best interest to negotiate with offerors to achieve "best value"
RFQU. ANSWER -Request for Qualifications. Used when the award is base on the
qualifications of the supplier.
RFI. ANSWER -Request for Information. Used to solicit information from the
supplier community
LOI. ANSWER -Letter of Interest. Less formal, less expensive approach to gathering
information form suppliers.
NOI. ANSWER -Notice of Intent. Public notice issued to announce the intended
award of an agreement to a certain supplier or service provider
Sole Source. ANSWER -May result because only one supplier possesses the unique
ability or capability to meet the particular requirements of the solicitation
TCO. ANSWER -Total Cost of Ownership
Total Cost of Ownership. ANSWER -A measure of all the cost components
associated with the procurement of a product or service
, LCC. ANSWER -Life Cycle cost
Life Cycle Cost. ANSWER -The total cost of ownership over the life span of the
asset. Takes into account operating, maintenance, the time value of money, disposal
and other associated costs of ownership
TCO/LCC is most appropriate when. ANSWER -The original purchase price is high,
life cycle is long, operating costs are large, energy consumption or maintenance costs
significant throughout the life of the asset and/or required on Federal Government
large capital asset equipment purchases
Make, Lease or Buy Concept. ANSWER -Four step process
Four step process for Make, Lease or Buy. ANSWER -Define the outputs being
analyzed, determine costs that will be saved if the requirements is outsourced,
compute the costs of contracting from the private sector and compare the difference
and make decision
Operating Leases. ANSWER -Characterized by their duration. Most are short-term,
for a fixed period of time that is considerably less than the life of the equipment being
leased.
Financial Lease. ANSWER -Used as a financing tool and may generate long-term
benefits
Full Payout Leases. ANSWER -The lessee pays the full purchase price, plus interest
charges, maintenance, insurance and administration costs
Questions With Complete Solutions
Graded A+
QUESTIONS AND ANSWERS
Scope of Work. ANSWER -Typically developed by procurement to be included in the
solicitation to procure services or other more complex combinations of products and
services. Sometimes called "Performance Specification"
PWS. ANSWER -Performance Work Statement
SOO. ANSWER -Statement of Objectives
Statement of Work. ANSWER -The proposed solution by the successful proposer
responding to the Scope of Work appearing in the solicitation.
Benchmarking. ANSWER -The act of measuring a process, service or product
against the characteristics of the recognized leaders in the given area of review
IFB. ANSWER -Invitation for Bid, also known as competitive sealed bidding.
Preferred method for acquiring goods, some services and some construction for public
use. Award is made to the lowest responsive and responsible bidder.
RFQ. ANSWER -Request for quotation. Also known as informal competitive
bidding. Generally used for small orders under a certain dollar threshold.
,RFP. ANSWER -Request for Proposals. Allows the reviewer or evaluator to consider
factors other than price
ITN. ANSWER -Invitation to Negotiate. Used when the procurement authority
deems it is in their best interest to negotiate with offerors to achieve "best value"
RFQU. ANSWER -Request for Qualifications. Used when the award is base on the
qualifications of the supplier.
RFI. ANSWER -Request for Information. Used to solicit information from the
supplier community
LOI. ANSWER -Letter of Interest. Less formal, less expensive approach to gathering
information form suppliers.
NOI. ANSWER -Notice of Intent. Public notice issued to announce the intended
award of an agreement to a certain supplier or service provider
Sole Source. ANSWER -May result because only one supplier possesses the unique
ability or capability to meet the particular requirements of the solicitation
TCO. ANSWER -Total Cost of Ownership
Total Cost of Ownership. ANSWER -A measure of all the cost components
associated with the procurement of a product or service
, LCC. ANSWER -Life Cycle cost
Life Cycle Cost. ANSWER -The total cost of ownership over the life span of the
asset. Takes into account operating, maintenance, the time value of money, disposal
and other associated costs of ownership
TCO/LCC is most appropriate when. ANSWER -The original purchase price is high,
life cycle is long, operating costs are large, energy consumption or maintenance costs
significant throughout the life of the asset and/or required on Federal Government
large capital asset equipment purchases
Make, Lease or Buy Concept. ANSWER -Four step process
Four step process for Make, Lease or Buy. ANSWER -Define the outputs being
analyzed, determine costs that will be saved if the requirements is outsourced,
compute the costs of contracting from the private sector and compare the difference
and make decision
Operating Leases. ANSWER -Characterized by their duration. Most are short-term,
for a fixed period of time that is considerably less than the life of the equipment being
leased.
Financial Lease. ANSWER -Used as a financing tool and may generate long-term
benefits
Full Payout Leases. ANSWER -The lessee pays the full purchase price, plus interest
charges, maintenance, insurance and administration costs
