CPPB EXAM PREP QUESTIONS WITH
CORRECT ANSWERS
What other laws are applicable to public procurement? - ANSWER--Criminal Law
-Tort Law
-Budget/Finance Laws
Define Criminal Law - ANSWER-Imposes punishment such as imprisonment or fines
for an act deemed to be criminal
Define tort law - ANSWER-Permits parties to sue each other for damage to a person
or property.
Define Budget/Finance Laws - ANSWER-These laws prohibit an entity from
spending funds beyond those that the legislative body appropriates.
What is authority? - ANSWER-The right to perform certain acts or prescribe rules
governing the conduct of others.
What is Law of Agency? - ANSWER-The law of agency states that an agent is
someone who acts on behalf of a principal. A product of common law that focuses
not only on the creation of agent relationships but also the liability for losses suffered
by others who deal with agents.
What are the two ways an agency relationship by created? - ANSWER--by
agreement between principal and agent or
-by law
What is a principal? - ANSWER-A principal is one who employs an agent. A person
who authorized another to act for him/her.
What is an agent? - ANSWER-An agent is a person authorized by a superior, i.e.,
principal, to act for him or her. Individuals who act on behalf of an entity, such as a
corporation, partnership, or any level of government as that entity conducts
business. In public procurement, this designation is usually incorporated into statute
and ordinance.
What is express authority? - ANSWER-Express authority is the authority that is
explicitly given in direct language rather than inferred from conduct. It can be in
writing or oral. Express authority can be very specific; for example, "the chief
procurement officer is authorized to enter into a contract for less than $25,000."
Express authority may also be generalized; for example, "the chief procurement
officer has the authority to enter into all contracts according to the procurement
needs of his/her government entity."
What is implied authority? - ANSWER-Implied authority is not defined expressly, but
is only determined by inferences and reasonable deductions that are necessary to
,perform the expressly authorized acts. Can consider the conduct of the principal
regarding the historical actions of the agent.
What is apparent authority? - ANSWER-Apparent authority is the reasonable
impression that an agent is permitted to act on their principal's authority even though
that authority has not been granted.
What is inherent authority? - ANSWER-Inherent authority is based on an entity's
sovereignty, to enter into contracts, although not explicitly authorized.
What are some of the technologies that are currently available to procurement? -
ANSWER--E-Commerce; more specifically-e-sourcing, e-procurement, e-purchasing,
e-auctions, e-tender
-Electronic payment solutions
-Marketplaces/Business exchanges
-Contract registers/databases
-Knowledge portals/supplier databases
-Business intelligence
-E-invoicing/e-payables
-ERP (Enterprise Resource Planning) systems
-MRP (Materials Resource Planning) inventory systems
-EPOS (Electronic Point of Sales)
-Barcoding/RFID (Radio Frequency Identification)
-Intranets
-Extranets
What should be included on a checklist of best practices to implement the use of
technology in procurement? - ANSWER--Integration of financial system with
procurement system to allow for verification of funds prior to the release of the order
-Automated process flows for approvals
-Enable the entity to receive electronic requisitions
-Preparation of solicitations from requisition information
-Utilization of "push technology" to notify potential offerors of available opportunities
-Preparation of bid tabulations and bid analysis reports
-Preparation of proposal evaluation reports
-Preparation and distribution of notices of award
-Use of a commodity/service code structure to group and track purchases
-Automated production of purchase orders for standard inventory items
-Accumulation of usage data for contract items
-Track order released against contracts
-Implementation of supplier performance reports that reflect Client satisfaction
-Client satisfaction/dissatisfaction, etc.
-Automate recording and updates to the purchase history
-Track the status of requisitions and purchase orders
-Production of essential management reports and summaries
-Inclusion of contract administration functionality within the technology
-Use of e-commerce to source and order goods and services online
-Acceptance of electronic informal quotes
-Provide electronic catalogues to the user departments/divisions
-Use of reverse auction processes for high-volume, standardized commodities
,-Use of online surplus auction services
-Use of solicitation development software with process flow, templates, library of
clauses, approval process, etc.
-Online posting of purchasing , award, and contract information for transparency
purposes.
What does the concept of competition presume? - ANSWER-It presumes the
existence of a marketplace in which there is more than one supplier providing similar
goods or services.
Define competition. - ANSWER-Competition can be defined as the process by which
two or more suppliers attempt to secure the business of a third party by offering the
most favorable price, quality, delivery terms, or service.
What are the characteristics of a supplier manual? - ANSWER--well organized, clear
and easy to understand
-clear definition of the purpose and a consistent approach to decision making
-framework for training
-flexible
-endorsed by the entity's Chief Executive Officer
-supplier outreach information
-transparent
-facilitate revision
Is Governmental power inherent? - ANSWER-Yes, they are inherent powers that are
granted by a constitution, charter or act.
Does a government official have inherent power? - ANSWER-No, for purposes of
public procurement, there must be a specific authorization from officials in the
executive branch of government to enter into contracts. Without that authority, the
officials may not do so. The existence of such authority is the foundation of any
public procurement system.
Who passes laws and/or ordinances to generally define the scope of authority and
identifies who may exercise that authority? - ANSWER-Legislative bodies.
What are the most effective procurement statutes and ordinances? - ANSWER-
Those that establish the general parameters of an official's contracting or
procurement authority and authorize that official to promulgate rules, regulations or
policies to implement it.
Is Government procurement restricted to activities that are authorized by law? -
ANSWER-Yes, the authority of the central procurement department is limited by
what has been included in the enabling legislation.
How is the private sector restricted in procurement? - ANSWER-They may do
whatever the law does not prohibit.
What does enabling legislation include? - ANSWER--constitutions
-statutes
, -ordinances and charters
-rules and regulations
-policy
-procurement procedures
What are the three primary sources of procurement laws in any entity? - ANSWER--
Statutory Laws
-Administrative Laws
-Common Law
What are Statutory Laws? - ANSWER-These include constitutions, statutes,
ordinances and charters. Statutory Laws are based on statutes or laws passed by
governments. State or provincial statutes provide state/provincial-directed legislative
law. Ordinances and charters provide for local and municipal governments.
What are Administrative Laws? - ANSWER-These are written rules and regulations
and entity policy (developed and promulgated by administrative and regulatory
governmental agencies). Administrative Law, provided by the applicable regulatory
entity, has equal force and effect as legislative law as long as it does not supersede
the context of legislative law.
What is Common Law? - ANSWER-These are based on customs and traditions and
codified through the legal system. Common Law is based on custom and usage or
confirmed by court decisions, i.e., a collection of court decisions. Access to
published judicial decisions is available through volumes called "reporters" in major
law libraries.
What social and economic problems have policy makers enacted because of the
magnitude of state and local government spending which require contractors to do
what? - ANSWER--maintain fair employee practices
-provide safe and healthy working conditions
-pay fair wages
-refrain from polluting the air and waters
-give preference to contractors from the same state/province or locality
-award to small or women owned businesses
-promote the rehabilitation of prisoners and the disabled
What does competition promote? - ANSWER-It promotes free access to the
marketplace, induces new businesses to enter, promotes better market performance,
and encourages new technology and higher productivity.
The extent to which procurement professionals foster competition depends on what?
- ANSWER--requirements in law or regulation to use specific suppliers
-requirements for "maximum practicable" and "full and open" competition
-the validity and suitability of an unsolicited proposal
-requirements to set aside procurements for small business
-availability of suppliers under the small business programs
What is another term for fair and open competition? - ANSWER-Full and open
competition.
CORRECT ANSWERS
What other laws are applicable to public procurement? - ANSWER--Criminal Law
-Tort Law
-Budget/Finance Laws
Define Criminal Law - ANSWER-Imposes punishment such as imprisonment or fines
for an act deemed to be criminal
Define tort law - ANSWER-Permits parties to sue each other for damage to a person
or property.
Define Budget/Finance Laws - ANSWER-These laws prohibit an entity from
spending funds beyond those that the legislative body appropriates.
What is authority? - ANSWER-The right to perform certain acts or prescribe rules
governing the conduct of others.
What is Law of Agency? - ANSWER-The law of agency states that an agent is
someone who acts on behalf of a principal. A product of common law that focuses
not only on the creation of agent relationships but also the liability for losses suffered
by others who deal with agents.
What are the two ways an agency relationship by created? - ANSWER--by
agreement between principal and agent or
-by law
What is a principal? - ANSWER-A principal is one who employs an agent. A person
who authorized another to act for him/her.
What is an agent? - ANSWER-An agent is a person authorized by a superior, i.e.,
principal, to act for him or her. Individuals who act on behalf of an entity, such as a
corporation, partnership, or any level of government as that entity conducts
business. In public procurement, this designation is usually incorporated into statute
and ordinance.
What is express authority? - ANSWER-Express authority is the authority that is
explicitly given in direct language rather than inferred from conduct. It can be in
writing or oral. Express authority can be very specific; for example, "the chief
procurement officer is authorized to enter into a contract for less than $25,000."
Express authority may also be generalized; for example, "the chief procurement
officer has the authority to enter into all contracts according to the procurement
needs of his/her government entity."
What is implied authority? - ANSWER-Implied authority is not defined expressly, but
is only determined by inferences and reasonable deductions that are necessary to
,perform the expressly authorized acts. Can consider the conduct of the principal
regarding the historical actions of the agent.
What is apparent authority? - ANSWER-Apparent authority is the reasonable
impression that an agent is permitted to act on their principal's authority even though
that authority has not been granted.
What is inherent authority? - ANSWER-Inherent authority is based on an entity's
sovereignty, to enter into contracts, although not explicitly authorized.
What are some of the technologies that are currently available to procurement? -
ANSWER--E-Commerce; more specifically-e-sourcing, e-procurement, e-purchasing,
e-auctions, e-tender
-Electronic payment solutions
-Marketplaces/Business exchanges
-Contract registers/databases
-Knowledge portals/supplier databases
-Business intelligence
-E-invoicing/e-payables
-ERP (Enterprise Resource Planning) systems
-MRP (Materials Resource Planning) inventory systems
-EPOS (Electronic Point of Sales)
-Barcoding/RFID (Radio Frequency Identification)
-Intranets
-Extranets
What should be included on a checklist of best practices to implement the use of
technology in procurement? - ANSWER--Integration of financial system with
procurement system to allow for verification of funds prior to the release of the order
-Automated process flows for approvals
-Enable the entity to receive electronic requisitions
-Preparation of solicitations from requisition information
-Utilization of "push technology" to notify potential offerors of available opportunities
-Preparation of bid tabulations and bid analysis reports
-Preparation of proposal evaluation reports
-Preparation and distribution of notices of award
-Use of a commodity/service code structure to group and track purchases
-Automated production of purchase orders for standard inventory items
-Accumulation of usage data for contract items
-Track order released against contracts
-Implementation of supplier performance reports that reflect Client satisfaction
-Client satisfaction/dissatisfaction, etc.
-Automate recording and updates to the purchase history
-Track the status of requisitions and purchase orders
-Production of essential management reports and summaries
-Inclusion of contract administration functionality within the technology
-Use of e-commerce to source and order goods and services online
-Acceptance of electronic informal quotes
-Provide electronic catalogues to the user departments/divisions
-Use of reverse auction processes for high-volume, standardized commodities
,-Use of online surplus auction services
-Use of solicitation development software with process flow, templates, library of
clauses, approval process, etc.
-Online posting of purchasing , award, and contract information for transparency
purposes.
What does the concept of competition presume? - ANSWER-It presumes the
existence of a marketplace in which there is more than one supplier providing similar
goods or services.
Define competition. - ANSWER-Competition can be defined as the process by which
two or more suppliers attempt to secure the business of a third party by offering the
most favorable price, quality, delivery terms, or service.
What are the characteristics of a supplier manual? - ANSWER--well organized, clear
and easy to understand
-clear definition of the purpose and a consistent approach to decision making
-framework for training
-flexible
-endorsed by the entity's Chief Executive Officer
-supplier outreach information
-transparent
-facilitate revision
Is Governmental power inherent? - ANSWER-Yes, they are inherent powers that are
granted by a constitution, charter or act.
Does a government official have inherent power? - ANSWER-No, for purposes of
public procurement, there must be a specific authorization from officials in the
executive branch of government to enter into contracts. Without that authority, the
officials may not do so. The existence of such authority is the foundation of any
public procurement system.
Who passes laws and/or ordinances to generally define the scope of authority and
identifies who may exercise that authority? - ANSWER-Legislative bodies.
What are the most effective procurement statutes and ordinances? - ANSWER-
Those that establish the general parameters of an official's contracting or
procurement authority and authorize that official to promulgate rules, regulations or
policies to implement it.
Is Government procurement restricted to activities that are authorized by law? -
ANSWER-Yes, the authority of the central procurement department is limited by
what has been included in the enabling legislation.
How is the private sector restricted in procurement? - ANSWER-They may do
whatever the law does not prohibit.
What does enabling legislation include? - ANSWER--constitutions
-statutes
, -ordinances and charters
-rules and regulations
-policy
-procurement procedures
What are the three primary sources of procurement laws in any entity? - ANSWER--
Statutory Laws
-Administrative Laws
-Common Law
What are Statutory Laws? - ANSWER-These include constitutions, statutes,
ordinances and charters. Statutory Laws are based on statutes or laws passed by
governments. State or provincial statutes provide state/provincial-directed legislative
law. Ordinances and charters provide for local and municipal governments.
What are Administrative Laws? - ANSWER-These are written rules and regulations
and entity policy (developed and promulgated by administrative and regulatory
governmental agencies). Administrative Law, provided by the applicable regulatory
entity, has equal force and effect as legislative law as long as it does not supersede
the context of legislative law.
What is Common Law? - ANSWER-These are based on customs and traditions and
codified through the legal system. Common Law is based on custom and usage or
confirmed by court decisions, i.e., a collection of court decisions. Access to
published judicial decisions is available through volumes called "reporters" in major
law libraries.
What social and economic problems have policy makers enacted because of the
magnitude of state and local government spending which require contractors to do
what? - ANSWER--maintain fair employee practices
-provide safe and healthy working conditions
-pay fair wages
-refrain from polluting the air and waters
-give preference to contractors from the same state/province or locality
-award to small or women owned businesses
-promote the rehabilitation of prisoners and the disabled
What does competition promote? - ANSWER-It promotes free access to the
marketplace, induces new businesses to enter, promotes better market performance,
and encourages new technology and higher productivity.
The extent to which procurement professionals foster competition depends on what?
- ANSWER--requirements in law or regulation to use specific suppliers
-requirements for "maximum practicable" and "full and open" competition
-the validity and suitability of an unsolicited proposal
-requirements to set aside procurements for small business
-availability of suppliers under the small business programs
What is another term for fair and open competition? - ANSWER-Full and open
competition.
