Procurement- Study Guide
Public procurement is.... - Answer The designated legal authority to advise, plan, obtain,
deliver, and evaluate a government's expenditures on goods and services that are used to fulfill
stated objectives, obligations, and activities in pursuit of desired policy outcomes.
Materials Management... - Answer embraces all functions related to the control and
coordination of the movement of goods and maintenance, repair and operating items to,
through, and out of the organization.
May include functions such as purchasing, storage, inventory control, material forecasting,
receiving, transportation, inspection, and quality control.
Name the functions Materials Management includes... - Answer purchasing, storage,
disposal, material forecasting, inventory control, preparing requisitions, developing
specifications, receiving, quality control and inspection.
Public Procurement value-adding benefits are... - Answer quality, cost (including total cost of
ownership), service, continuity of supply, and time.
Goals of public procurement - Answer Cost
Quality
Timeliness
Managing Risk
Accomplishing Social and Economic Objectives
Maximizing Competition
Maintaining Integrity and Transparency
Cost is... - Answer The actual expenses incurred in delivering a product, service, or
construction; includes both direct and indirect costs, but does not include fee or profit from the
vendor.
Quality is.. - Answer 1. The function of excellence, intrinsic value, or grade as determined
over time by society generally or by designated bodies in specialized fields.
2. The composite of all attributes or characteristics, including performance, that satisfy the
user's needs.
3. Conformance with the stated requirements.
, Timeliness is... - Answer delivering the requisitioned supplies to the end-user at the time
necessary for the end-user's purposes.
Managing Risk is... - Answer the process of identification and analysis of risk; and the decision
to either accept or mitigate the exposure to such risk when compared to the potential impact
on the achievement of the organization's objectives.
Davis-Bacon and Service Contract Acts socio-economic objectives are... - Answer pay
prevailing wages for work on government contracts.
Clean Air and Clean Water Acts socio-economic objectives are... - Answer to protect the
environment.
Buy American Act socio-economic objectives are... - Answer to protect American economy
and provide employment opportunities for American workers.
Executive Orders 11141 and 11246 socio-economic objectives are... - Answer to ensure equal
employment opportunity.
Veterans Preference Act socio-economic objectives are... - Answer to promote the hiring of
veterans.
Competition is defined as... - Answer the effort of two or more vendors to secure business of
a 3rd party by the offer which has the most favorable terms as to price, quality, promptness of
delivery, and/or service. (NIGP, 2000)
Transparency is... - Answer the idea that the more information disclosed about a business,
financial or economic activity the better which improves ethical conduct.
Integrity is... - Answer personal adherence to a strict moral or ethical code of conduct.
What is the competition and cost tradeoff? - Answer The primary benefit of competition is to
reduce pricing. On the other hand, it is subject to diminishing returns; the more offers the
government solicits, the higher the admin costs incurred as every offer is additional cost.
Theoretically, there is an optimum benefit level of competition for any given acquisition.
Name the 2 types of government systems. - Answer Unitary and federal.