CPPB Final Exam Review – 465 Questions with 100% Correct and Verified Answers

CPPB Final Exam Review – 465 Questions with 100% Correct and Verified Answers What should be provided for suppliers before conducting an evaluation interview? Agencies Standard Terms and Conditions Questions from the evaluation committee Copy of how to conduct business with the agency List of the evaluation committee - Correct Answer Questions from the evaluation committee" "Agencies not following their process, lack of clarity in bid documents and a perception of not being fair are some of the reasons vendors give for: Not registering with the agency Not responding to solicitations Ignoring phone calls and emails Filing protests of awards - Correct Answer Filing protests of awards" "The agency has just awarded a contract for cleaning services in the headquarters building. It is very important that the cleaning be done in a professional manner since this is a high visibility area and receives a lot of the senior staff traffic throughout the day. The contract was very detailed as to the standards to be met. What can the Contract Administrator include in the performance assessment plan to ensure compliance with the performance standards? Value analysis Surveillance techniques Progress meetings Final inspections - Correct Answer Surveillance techniques" "Under the Uniform Commercial Code, the failure of a seller to deliver contracted goods would allow the buyer to: Obtain them from the next lowest bidder Obtain them at the current market price and charge the seller the difference. Cancel the contract and rebid. Invoke liquidated damages. - Correct Answer Obtain them at the current market price and charge the seller the difference." "Instead of transferring the item to the surplus property office, a user agency may decide to disassemble it so that its component parts may be used to repair or maintain a similar item. However, the disassembly of the item should occur only after the agency determines that there is a greater potential value and benefit to taking the item apart than by trading it in selling it. What is this process called?. Cannibalization Disposition of non-expendable supplies Disposition of excess supplies Disposition of expendable supplies - Correct Answer Cannibalization" "Several divisions within a government entity purchase equipment to do similar work. Each division has its favorite type of equipment. What process would increase efficiency and savings across the divisions? Use of p-cards Cooperative purchasing Standardization Bench-marking - Correct Answer Standardization" "A Buyer is preparing an RFP and the end user has requested a weight of 75% on pricing. How should the Buyer proceed? Suggest to the end user an ITB would be more appropriate Proceed as requested and issue an RFP Ignore the request and revise the pricing weight to 30% Inform your CPO of the policy violation - Correct Answer Suggest to the end user an ITB would be more appropriate" "A buyer is charged with purchasing diesel fuel for a transit system. What type of study should be conducted to determine how best to make this purchase? Value analysis Vendor selection Demand analysis Market analysis - Correct Answer Market analysis" "Lead time is the time it takes for what to happen? To deliver goods from the warehouse to the end user Pay the invoice Place a requisition and receive the item For the goods to arrive on your dock after placing the purchase order - Correct Answer For the goods to arrive on your dock after placing the purchase order" "An agency has contracted for a full dump truck delivery of 3/4" gravel to be used as a base foundation for a new roadway it is constructing. The gravel truck arrives as scheduled; however, the road crew supervisor tells the supplier that he cannot accept immediate delivery of the gravel since the engine just failed on the agency's piece of road grading machinery. What is the fee charged by the contractor for tying up his truck? Delay fees Consideration Rent Demurrage - Correct Answer Demurrage" "ABC Classification is The quantity of materials providing the lowest acquisition and inventory costs at a minimum cost per unit An approach to procurement in which supplies are ordered so that they will be received when needed An inventory system designed to focus greatest attention on inventory items with the highest monetary value A method of accounting for the costs of supplies in inventory - Correct Answer An inventory system designed to focus greatest attention on inventory items with the highest monetary value" "The buyer at the County contacts the supplier to see if an item can be shipped sooner than what had been originally contractually agreed upon. This call is an example of: Contract Fulfillment Delivery Follow Up Expediting Management of Suppliers - Correct Answer Expediting" "In order to get the best possible delivery it may be beneficial to do what? Contract for product transport services independent of the product itself Stock out risk Use an F.O.B. delivery method Make it part of the terms and conditions of the contract - Correct Answer Contract for product transport services independent of the product itself" "The term for managing an organization's physical, infrastructure, fixed, IT and digital property from acquisition through disposition is called: Disposition process Commodity management Supply chain management Asset management - Correct Answer Asset management" "First In First Out (FIFO) means: Supplies with the highest value are used first Goods acquired most recently are used first Supplies with a longer shelf life are given a lower priority The oldest inventory items, the ones purchased first, are used before newer item - Correct Answer The oldest inventory items, the ones purchased first, are used before newer item" "What is the best way to dispose of obsolete and surplus equipment? Give it to a charity and take the tax write-off Offer it at a very reduced prices to employees Raffle it off as a fundraiser Make it available for sale to the public - Correct Answer Make it available for sale to the public" "The maximum inventory level or re-order point will be dependent on what factors? Stock out risk Perishability and obsolesce Demand, value and inflation rates Carrying costs, acquisition costs, working inventory, safety inventory, lead times - Correct Answer Carrying costs, acquisition costs, working inventory, safety inventory, lead times" "The American Association of State Highway and Transportation Officials (AASHTO), has just changed their highway paint specification to a more reflective paint. For safety reasons, the new paint will be utilized immediately. What happens to the now obsolete paint? The entity will offer it to its employees The entity will repurpose it for future use It is classified as surplus and auctioned to the public It is classified as excess and given to a different department - Correct Answer It is classified as surplus and auctioned to the public" "Nonexpendable supplies are: Supplies having a cost of over $100 and a useful life of over 1 year All tangible supplies Supplies with a shelf life of over 3 years Supplies having a cost of over $1000 and a useful life of over 5 years - Correct Answer Supplies having a cost of over $100 and a useful life of over 1 year" "Expendable supplies are Supplies with a very low value Supplies or equipment that are normally consumed during use and have a very short life cycle Supplies that do not have any market value. Supplies that have a very short shelf life - Correct Answer Supplies or equipment that are normally consumed during use and have a very short life cycle" "The Materials Manager for the Utility Board has to keep parts and materials in stock to maintain all 42 pump stations as well as all the infrastructure to keep the town citizens supplied with clean pure, well water. This service has to be provided 24/7, and all essential maintenance, repair parts, and pumps must be readily available. These deep well pumps cost tens of thousands of dollars, but if they are maintained correctly, they can last over 10 years. What should be done with a decommissioned pump? Cannibalize it for parts Sell it via an electronic auction Sell is as scrap metal Transfer it to another entity - Correct Answer Cannibalize it for parts" "Obsolete supplies are: Supplies over 5 years old Supplies with an expired shelf life Supplies no longer needed by the entity Supplies that are out of date or no longer effectively usable - Correct Answer Supplies that are out of date or no longer effectively usable" "Excess supply is Supplies that have completed their useful lifecycle Obsolete and scrap materials and supplies All expendable supplies Supplies having a remaining useful life - Correct Answer which are no longer required by the entity,Supplies having a remaining useful life, which are no longer required by the entity" "The carrying cost of inventory for public agencies is" Less than for private companies More than for private companies There is no carrying cost of inventory for public agencies because they utilize JIT delivery About the same as private companies - Correct Answer Less than for private companies" "Safety stock is: An approach to procurement in which supplies are ordered so that they will be received when needed The quantity of materials needed to cover the order lead time. The quantity of material needed based on usage forecast. The quantity of material exceeding immediate needs held for the purpose of ensuring continuity of supply and guarding against unforeseen shortages. - Correct Answer The quantity of material exceeding immediate needs held for the purpose of ensuring continuity of supply and guarding against unforeseen shortages" "A determination of how a shipment will move from the point of origin to the destination including the selection of carriers, is called what? Expediting Routing Scheduling F.O.B. Delivery Point - Correct Answer Routing" "When selling surplus property the surplus property office should insure that it has what in place? Standard terms and conditions that disavow retailer-type responsibility An electronic auction site or retail store location A non-disclosure statement for all buyers to sign An established commercial market - Correct Answer Standard terms and conditions that disavow retailer-type responsibility" "A buyer changes the shipping route in order to have a delivery arrive earlier than previously contracted. What is this action called? Alternating options Re-routing Expediting Changing the F.O.B. point - Correct Answer Expediting" "The buyer at the county contacts a supplier to see if an item can be shipped sooner than what had been originally contractually agreed upon. The supplier states they can deliver one week sooner. What should the buyer do? Send the supplier an amended purchase order to accept Notify the ordering department that the item will arrive in one week Thank the supplier and wait for the delivery to arrive Cancel the delivery - Correct Answer Send the supplier an amended purchase order to accept" "New kitchen equipment in the Governor's residence kitchen was competitively bid awarded to the low bidder, 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 her 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? Call the supplier to see if the order can be expedited Review the order acknowledgement to check on the estimated ship date of the equipment Cancel the order and buy the equipment locally Go forward with the project as it is currently scheduled in the contract documents,Call the supplier to see if the order can be expedited - Correct Answer Call the supplier to see if the order can be expedited" "The buyer ordered books from a contracted supplier which would be used by students when school begins in two months. The following week, she received confirmation from the contractor that the books have been received by the shipping company however the following day she was 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? Declare this delay as grounds for default and issue a cure letter to the contractor Demand the contractor ship more books with a different carrier in order to meet the delivery parameters set forth in the contractual agreement Refer to tort law and procedures in her jurisdiction Declare this delay unforeseeable and allow the contractor a reasonable amount of additional time for delivery - Correct Answer Declare this delay unforeseeable and allow the contractor a reasonable amount of additional time for delivery" "The buyer is forecasting the demand for goods that are stable and have no seasonal trend. Which method should he use? Linear regression method Moving average method Weighted moving average method Trend estimation method - Correct Answer Moving average method" "An entity needs to speed-up the agreed delivery date for a specific order. What is this activity called? Accelerating Expediting Amending the order Follow-up - Correct Answer Expediting" "After the part has been ordered the buyer communicates regularly with the supplier to make sure the shipment arrives at the scheduled time. What is this activity? Communication Follow-up Expediting Quality assurance - Correct Answer Follow-up" "The buyer was asked to illustrate short-term spend patterns for four different commodities. What can he use to communicate his findings? Supply grid Trend lines PERT Chart Procurement profile - Correct Answer Trend lines" "An entity needs to purchase copper pope at various times over the next year. Which type of contract should the buyer use for this purchase? Blanket contract Firm fixed price contract Term contract Spot buy - Correct Answer Term contract" "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? Assess risk levels for each expenditure category Begin analyzing the Departments' spending patterns Gather two additional years of purchase history from each Department Generate a Procurement Profile - Correct Answer Gather two additional years of purchase history from each Department" "What critical information will a market analysis yield? A review of suppliers and their qualifications The anticipated agency material requirements The average time from purchase to delivery The best time to buy - Correct Answer The best time to buy" "Good inventory management focuses on what goal? Shifting all supplies to Just-in-Time management Eventually discontinuing all goods maintained in inventory Minimizing expenses while maximizing supplies Providing internal customers with as many different choices as possible - Correct Answer Minimizing expenses while maximizing supplies" "In order to qualify for federal preparedness assistance state and local jurisdictions must do what? Complete FEMA paperwork Follow the Presidential Policy Directive 8 (PPD-8) Adopt the National Incident Management System (NIMS) Work within the National Response framework - Correct Answer Adopt the National Incident Management System (NIMS)" "This forecasting method divides total usage for a period of time by the number of months involved. What is the method? Moving Average Economic Ordering Quantity Mean Absolute Deviation Fixed period - Correct Answer Fixed period" "In order to plan and measure effectively what must be developed and aligned with strategic goals? Performance metrics Expected outcomes Outputs Trends and known standards - Correct Answer Performance metrics" "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? LIFO JIT FIFO Procurement cards - Correct Answer FIFO" "What does a vision statement represent? A broad guideline An ideal state A long-term objective A specific goal - Correct Answer A long-term objective" "What action should always be taken when an order is delinquent? Protest it Document it Investigate it Accept it - Correct Answer Document it" "Plotting goods and services according to the difficulty in securing them and their cost is a strategic activity called: Supply positioning Procurement profiling Spend patterns Procurement integration - Correct Answer Supply positioning" "A buyer takes advantage of a dip in market prices and buys liquid petroleum gas to store and use during high-demand times. The buyer made a: Term contract Value analysis Forecast based decision Spot bid - Correct Answer Spot bid" "There are a number of key stakeholders involved in strategic planning, however, which of the following should NOT be part of the strategic planning team? Elected officials Department personnel Finance personnel area Procurement personnel - Correct Answer Elected officials" "What is the function of an organization's mission statement? Identify roles and responsibilities of key stakeholders Articulate the goals and objectives of the organization Express the organization's purpose for existence Communicate particular organizational strategies for success - Correct Answer Express the organization's purpose for existence" "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? Identify a current qualified employee interested in advancement to this position Provide horizontal training opportunities to all procurement employees Schedule retraining sessions for all employees Establish a succession plan for the jurisdiction - Correct Answer Establish a succession plan for the jurisdiction" "What types of analyses are involved in developing a buying plan? Demand, market and supplier Suppliers, users and requirements Price, maintenance and acquisition cost Value, cost and satisfaction - Correct Answer Demand, market and supplier" "A buyer is developing a plan for the purchase of fuel oil. What are his main considerations? Volume and timing Delivery and storage Weather and demand Cost and value - Correct Answer Volume and timing" "What does a SWOT analysis examine? Cause and effect Threats weaknesses, opportunities and strengths The amount of time from solicitation to completion of contract The proportion of inputs to outputs - Correct Answer Threats, weaknesses, opportunities and strengths" "In a SMART objective what does the "M" stand for? Management Monetary Measurable Mandatory - Correct Answer measurable" "A value analysis is a systematic approach to determining what? The highest quality product or service The most efficient product or service to meet the entity needs The needed functionality at the lowest price The best specifications for a product or service - Correct Answer The needed functionality at the lowest price" "A type of contract in which a source of supply is established for a specified product for a specified time and a specified price is? A firm fixed price contract A term contract A Fixed-term contract A fixed price with redetermination contract - Correct Answer A term contract" "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? Conduct a cost analysis Conduct a value analysis Conduct a total cost of ownership analysis Conduct a spend analysis - Correct Answer Conduct a value analysis" "This forecasting method factors in seasonal variations. What is the method? Seasonal average Weighted moving average Economic Ordering Quantity Moving average - Correct Answer Weighted moving average" "The mission vision, goals and objectives of an organization should be: Aligned with the actual practice of the organization A collection of choices an organization can make to be great An unattainable future state An articulation of a "stretch" achievement - Correct Answer Aligned with the actual practice of the organization" "How often should a buyer conduct procurement forecasting? Seasonally especially for commodities that are weather related Annually in preparation for the budget cycle When requested by the user organization It is a constant process to identify opportunities and challenges - Correct Answer It is a constant process to identify opportunities and challenges" "Which is a benefit of strategic procurement planning? The warehouse was able to stock more goods for the entity A team was able to achieve short term goals for the entity Procurement resources could be assigned according to opportunities and risks Forecasting could be scheduled on an annual basis - Correct Answer Procurement resources could be assigned according to opportunities and risks" "Chemical-resistant valves for the wastewater treatment plant would be classified as what type of item in the ABC Inventory Classification system? Class B Class C Class A Unclassified - Correct Answer class B" "What step should an agency take after a disaster to ensure continuous improvement of its Continuity of Operations Plan? Confirm that the agency level COOP was aligned with the jurisdictional level COOP Conduct a final accounting of all disaster related expenses Conduct an after action review Confirm completion of all required documentation - Correct Answer Conduct an after action review" "The buyer needed to forecast the monthly need for copy paper over the coming fiscal year. What method should he use? Time series method Econometric method Composite forecast method Trend analysis method - Correct Answer Time series method" "The Pareto principle or 80/20 law is used to characterize what? The critical few and trivial many The workings of the economy The proportion of contracts for goods vs. services Budget allocations - Correct Answer The critical few and trivial many" "On what is a buying plan based? Key suppliers Category of materials User groups Entity annual budgets - Correct Answer Category of materials" "A buying plan requires an understanding of: Cost and effort Supply and demand Value and risk Volume and timing - Correct Answer Volume and timing" "A strategic procurement plan requires what type of input? Customer satisfaction measures Budget data for all areas Detailed and comprehensive spend data Comprehensive list of approved suppliers - Correct Answer Detailed and comprehensive spend data" "In order to foster a close relationship with its clients procurement must plan for what? Regular prioritizing and re-prioritizing of work Semi-annual meetings with each client Service Level Agreements establishing the work plan for the year Annual plans established with each client - Correct Answer Regular prioritizing and re-prioritizing of work" "What does Strategic Procurement Planning (SP2) involve? Planning to take advantage of political change Allocating scarce resources among various priorities Using SWOT to identify strategic barriers and opportunities Transforming mission goals and objectives into measurable activities - Correct Answer Transforming mission goals and objectives into measurable activities" "The greatest amount of time and procurement resources should be dedicated to: Items that are expensive and difficult to secure Obtaining competitive bids Items that satisfy Customer Service Level Agreements Items needed in times of emergency - Correct Answer Items that are expensive and difficult to secure" "Acquisition planning is a collaborative process involving procurement and what other group? Finance personnel for budget planning purposes and future appropriations End users to evaluate products and services for which they have a preference Suppliers to work together to draft specifications that meet the technical needs and purchasing goals of the end user Technical personnel to determine the best method to meet program needs within the strategic plan - Correct Answer Technical personnel to determine the best method to meet program needs within the strategic plan" "What can a buyer learn from looking at an entity's strategic plan? How to respond to political changes How to respond to technology changes Guidance in handling a current crisis The allocation of procurement resources - Correct Answer Guidance in handling a current crisis" "A buyer is determining the type and timing of a solicitation for fuel oil. Upon what should he base his decision? Last year's solicitation Agency action plan Forecasting results Requirements analysis - Correct Answer Forecasting results" "A buyer is responsible for the purchase of diesel fuel. In order to best meet this agency's needs what must the buyer do? Constantly research and scan the market for changes and trends Conduct time series forecasts to better predict future costs Determine when and where to curtail expenditures in the event of revenue shortfalls Conduct a cost-benefit analysis of potential acquisition methods - Correct Answer Constantly research and scan the market for changes and trends" "Researching product availability market volatility and price is: Market analysis Risk analysis Forecasting Supplier analysis - Correct Answer Market analysis" "A key value of the strategic planning process is: To create a plan that can be printed and distributed To create a course of action that remains despite changes in political leadership To force discipline on everyone involved to carry out the plan To document the work of the procurement department - Correct Answer To force discipline on everyone involved to carry out the plan" "The entity is contracting for a leading-edge energy-efficient building. To encourage creativity on the part of the proposers what should the RFP reward? Value analysis Process improvement Value engineering Benchmarking - Correct Answer Value engineering" "What is the purpose of a cost analysis? An attempt to project reasonable cost in a cost benefit analysis Helps determine costs actually incurred especially for nonstandard items Compares each price quoted the entity as a result of the bid process Helps determine functional requirements at the lowest possible cost without impacting need and suitability - Correct Answer An attempt to project reasonable cost in a cost benefit analysis" "A buyer has issued a solicitation for thermal receipt paper with a width of 3 inches and with samples to be provided. One of the samples received measures 3.25 inches. What action should the buyer take first in evaluating the samples? Mark the sample non-conforming and reject Check solicitation document for acceptable variances Ask supplier for another conforming sample Mark the supplier as non-responsible - Correct Answer Check solicitation document for acceptable variances" "A procurement professional has received a requisition to purchase a tractor. What is the first step to ensure unrestrictive specifications for a tractor that will meet the needs of the using department? Prepare a sole source justification to purchase the model and brand name requested by the using department Ask the using department for the model number then request competitive bids Prepare a solicitation document and request bids from local suppliers in the community Determine the specific needs of the using department and consider multiple resources to develop the specifications before requesting competitive bids - Correct Answer Determine the specific needs of the using department and consider multiple resources to develop the specifications before requesting competitive bids" "What type of contract allows for upward or downward adjustment of price? Fixed Price with Escalation Contract Cost Sharing Contract Fixed Firm Price Contract Cost Plus Fixed Fee Contract - Correct Answer Fixed Price with Escalation Contract" "An entity is trying to establish a Supplier Managed Inventory. Which of the following is the most critical when selecting a supplier? Lowest Cost References from other users Post-qualify the suppliers Location of supplier - Correct Answer References from other users" "A requisition has been submitted calling for a specific brand of toner. What should the buyer do? Issue solicitation if brand name can be justified Reject requisition as too restrictive Issue solicitation using brand name and include the term "or approved equal" Issue solicitation if brand name is on qualified products list - Correct Answer Issue solicitation using brand name and include the term "or approved equal"" "What is the function of a design specification? Describes the commercial standards used in manufacturing an item Describes the detailed characteristics of an item including how it is to be manufactured Sets forth the capabilities and performance characteristics Describes the standard of quality and performance by model number and title - Correct Answer Describes the detailed characteristics of an item including how it is to be manufactured" "The price of rock salt is affected by what economic concept? The number of suppliers Supply and demand The commodities market An imperfect market - Correct Answer Supply and demand" "Which of these cannot result in an award? Invitation to Bid/Tender (IFB/ITT) Request for Information (RFI) Request for Proposal (RFP) Request for Quotation (RFQ) - Correct Answer Request for Information (RFI)" "The City is developing a solicitation for a new fireboat? What type of specifications should be used? Design Performance Brand name or equivalent Qualified Products List (QPL) - Correct Answer Performance" "Potential for contractual risk can be evaluated in the: Acceptance and inspection clauses of the contract Section of the contract that contains the Termination for Convenience clause Legal framework and language contained in the contract Section of the contract that identifies deliverables and delivery terms - Correct Answer Legal framework and language contained in the contract" "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? Select the best answer. Change Order Bilateral modification Unilateral modification Amendment - Correct Answer Unilateral modification" "What action should be taken after the contract has been closed out? Place the contract files in permanent storage Shred the files after 7 years Plan additional training for the contract administration team Review the documentation to identify areas for process improvement - Correct Answer Review the documentation to identify areas for process improvement" "An entity has contracted with a printer to complete a complex job that has a critical completion date What can the buyer do to protect the entity from loss if the printer fails to complete the contract? Arrange for a back-up printer Require a bid bond Require a payment bond Require a performance bond - Correct Answer Require a performance bond" "An entity is contracting for the construction of a new high school. What clause should be included in the contract to ensure that the project is completed on time? Key personnel Performances guarantees and incentives Termination Liquidated damages - Correct Answer Performances guarantees and incentives" "Which type of law is based on customs and usage, and confirmed by court decisions? Administrative Law Law of Agency Statutory Law Common Law - Correct Answer Common Law" "When an award protest is filed with an entity, what action should the buyer take? Cancel the solicitation and rebid Start the project on time then deal with the protest Decide whether or not to start the project based on legal counsel opinion Delay start of the project - Correct Answer Decide whether or not to start the project based on legal counsel opinion" "An entity is considering a total upgrade of their motorola radio inventory and an official has been tasked with determining the total cost of ownership for a new cache of devices. A total of 120 devices would need to be purchased at a cost of $2,400 each. The life span of each device is 5 years. Battery replacement would occur on an annual basis at a cost of $60 per device. In addition, one spare antenna will be purchased per device at a cost of $25. What is the total cost of ownership for all 120 devices? $339,000 $298,200 $291,300 $327,000 - Correct Answer $298,200" "The Sheriff's Department is planning on purchasing a scanner to be used on work-release inmates entering and leaving the jail. The scanner will have a life span of 10 years. The price for the scanner is $11,000.00. Maintenance must be performed on this machine monthly to ensure accuracy. Monthly maintenance will be $150.00. What is the life cycle cost for this entire purchase? $36,000.00 $11,000.00 $29,000.00 $18,000.00 - Correct Answer $29,000.00" "A well-known supplier provides milk to public school districts throughout the state. A newly assigned buyer has noticed that over the last six years, while 4 different milk suppliers are always solicited, the well-known supplier is the only one that provides a bid response and the bid prices increase by 5% each year. Based on this pattern of bidding, what action should the buyer take first? Report the supplier to the auditors for possible fraud Contact the previous buyer to find out any pertinent information on the lack of responses Contact all other bidders to determine why they did not bid on the agency's requirements Make the solicitation a sole source - Correct Answer Contact all other bidders to determine why they did not bid on the agency's requirements" "The buyer is developing specifications for the purchase of lumber. What type of specification should he include in the product description? Performance specification Market Grade Industry standards Engineering drawing - Correct Answer Market Grade" "A buyer receives purchase requisitions from several departments requesting varying quantities of letter size file cabinets. The total number of cabinets being requested is 48. How should the buyer proceed in this situation? Contact the requesting departments and ask them to agree on a single size. Contact the requesting departments and ask them to bundle their the orders Issue individual purchase orders, making sure that each order is under the dollar threshold required for competition Bundle all file cabinets requested and seek competition in order to obtain lower prices - Correct Answer Bundle all file cabinets requested and seek competition in order to obtain lower prices" "An entity manager is frustrated with the "low bid process" for buying mowers. He says although the upfront cost may be lower, the entity spends a lot more time and money keeping the mowers running. What approach might help this situation? Develop a solicitation that would evaluate the mowers on a life cycle cost basis Assure that the mower specifications are clear, complete and not ambiguous in any way Utilize a prequalification list in upcoming Invitations to Bid Suggest the entity issues a sole source contract to a mower company of the entity's choice - Correct Answer Develop a solicitation that would evaluate the mowers on a life cycle cost basis" "An entity must replace a piece of equipment. It is the middle of the fiscal year and there are no capital funds appropriated for the equipment. Which of the following would be the best option for the entity? Issue a purchase order now, knowing the new equipment will not be delivered until the next fiscal year when capital funds will be available Lease the equipment for the needed period of time until the capital funds become available in the next budget year Borrow the funds through the entity pooled investment fund and buy the equipment Purchase the equipment using a pcard and then charge it back to the capital account when funds become available - Correct Answer Lease the equipment for the needed period of time until the capital funds become available in the next budget year" "The entity's source list is outdated and they are looking for alternate methods to communicate solicitations. Which is a mandatory requirement of the alternative method? Ensure that all suppliers who can provide the desired product or service respond to every solicitation Bind the jurisdiction to advertise the same way for every solicitation Meet all formats required by law and regulation Include historical data per records retention requirements - Correct Answer Meet all formats required by law and regulation" "The agency is entering into a multi-year contract for professional services. However, funding is only guaranteed for the current fiscal period. How can the agency protect against the risk if funding is not approved in future fiscal periods? Insert a termination for convenience clause in the contract Obtain a commitment for future funding from user department management Obtain a payment and performance bond Insert a termination for non-appropriation clause in the contract - Correct Answer Insert a termination for non-appropriation clause in the contract" "What is the purpose of a performance audit? To provide independent unbiased, objective review of a governmental unit as a collective whole and identify and review vulnerable areas To review only the financial stability of the government unit and cut budgetary funding when needed To examine what goods and services are being procured by the state and how they are used within agencies To examine all procurement transactions and bring legal action against the procurement entity for any wrongdoings - Correct Answer To provide independent, unbiased, objective review of a governmental unit as a collective whole and identify and review vulnerable areas" "The procurement entity is exploring a new eProcurement system which includes an administration fee to awardees on all contracts. What should the procurement officer do to explore possible concerns from awardees on the new fee? Request input from other entities using eProcurement systems Create and administer an agency survey Create and administer a vendor survey Request input from internal system users about their experience - Correct Answer Create and administer a vendor survey" "What concept is based on the idea that nothing happens in a supply chain until a need is identified? First In First Out (FIFO) Last In, First Out (LIFO) Just in Time (JIT) re-Order Point - Correct Answer Just in Time (JIT)" "Procurement officials acting within the scope of their authority have what type of authority to legally bind the government? Express Authority Implied Authority Actual Authority Apparent Authority - Correct Answer Actual Authority" "The senior buyer has been asked by her Chief Procurement Officer to help identify resources on established best practices and strategies for modernizing their outdated procurement code and procurement manual. Which of the following resources would provide the best starting point for updating procurement regulations? The NASPO State and Local Government Procurement: A Practical Guide Another state's procurement manual. The American Bar Associations Model Procurement Code for State and Local Governments A comparison of all 50 US state procurement codes - Correct Answer The American Bar Associations Model Procurement Code for State and Local Governments" "At the first meeting of the evaluation committee everyone on the team signed a conflict of interest form. During an evaluation session, the purchasing officer noticed that one of the team members continued to discuss one proposal and was trying to convince the other members to change their scores. The purchasing officer met with the team member and discussed the situation. It was disclosed that the team member had worked for the company for a few years before coming to the government agency. What actions would you take as the purchasing officer? Declare an "appearance of conflict interest" and remove the team member immediately form the evaluation team Declare no conflict of interest and continue with the evaluation Declare an "actual conflict of interest" and take immediate action by removing that team member from the evaluation team declare a potential conflict of interest and resume with the same evaluation te - Correct Answer Declare an "appearance of conflict interest" and remove the team member immediately form the evaluation team" "You have been asked to put together a team to begin development of a large-scale solicitation. The members you chose to be part of the team have agreed to join the group and the team is currently working on learning the traits and strengths of other members and identifying a leader. What Team Development Stage is your team in? Storming Forming Performing Norming - Correct Answer Forming" "A senior buyer has been asked by their Procurement Director to review The Procurement Office Plan and Roadmap which sets both operational and strategic goals and objectives for the office. In order to help the office accomplish its short and long-term goals and objectives, this plan must be tied to the office's overall: vision and mission rules and regulations roles and responsibilities values and goals - Correct Answer vision and mission" "An agency is in need of a new Learning Management System (LMS) and has contacted the state procurement office to help create an initial proposal that justifies the project for leadership decision-makers. The assigned Procurement Officer suggests this document should include an analysis of business process performance and requirements assumptions, issues and risks. Which of the following best describes what type of structured proposal should be created? project charter evaluation report needs assessment Business case - Correct Answer Business case" "You been charged with creating a manual that contains at a minimum general information about the agency, describes how the solicitation process is conducted for all types of procurements, describes the limitations surrounding relationships and the extent of contact suppliers should have with user departments, as well as ethics and conflict of interest policies. What type of manual have you been asked to create? Supplier manual Supplier catalog Procedures manuals policy manual - Correct Answer Supplier manual" "The procurement officer has been in their position for three years. Beyond their initial training they have not received any further training aside from reading list- serve emails. In order for this and all procurement officers to stay abreast of the changes in this field, they should: review their training materials to refresh their procurement knowledge. talk to their Director of Procurement about creating a plan for professional development and continuing education in their jurisdiction. spend two hours a month reading or watching a procurement related piece of information. attend a NASPO sponsored training event - Correct Answer talk to their Director of Procurement about creating a plan for professional development and continuing education in their jurisdiction." "State-wide procurement reforms are usually driven by all of the following EXCEPT a memo drafted by the Chief Procurement Officer. ethics reforms. a judicial decision. budget deficits. - Correct Answer a memo drafted by the Chief Procurement Officer." "A stakeholder has brought an emerging issue to your attention regarding a recent information technology (IT) procurement. They have identified and analyzed the issue. What should be your next step? Make changes to the process to avoid the emerging issue. Request an independent source to verify the emerging issue. Examine the possible consequences of the emerging issue. Monitor the emerging issue and act when necessary. - Correct Answer Examine the possible consequences of the emerging issue." "The buyer notices a lag in processing times for the contracts being handled by a newer Contract Manager but there is not a measurement in place to gauge what defines a lag time or what the appropriate schedule should be. The buyer should: establish measurements for assessing the performance of the procurement process, including processing times, supplier performance data and client survey responses. file a complaint with HR about the amount of time the Contract Manager is taking. make a new schedule just for this contract manager. set a series of reminders on their calendar to remind them to check on the new contract manager - Correct Answer establish measurements for assessing the performance of the procurement process, including processing times, supplier performance data and client survey responses." "All of the following are considered standard terms and conditions with the exception of: Contract acceptance Force majeure Contract termination Insurance terms - Correct Answer Insurance terms" "During the evaluation process a buyer discovers that one of the evaluators had worked for an offeror prior to coming to the agency 6 years ago. What is the best course of action for the buyer to take? Report the evaluator's attempt to join the committee to the jurisdiction's ethics board or committee. Remove the evaluator from the evaluation committee for a conflict of interest. Do nothing since the evaluator has not worked for that offeror in over 5 years. Review the conflict of interest statement signed by the evaluator and investigate the situation to determine if there is actual bias - Correct Answer Review the conflict of interest statement signed by the evaluator and investigate the situation to determine if there is actual bias." "A team of buyers within the procurement office is charged with researching the rationale for acquiring an eProcurement system for the procurement entity which will be presented to the Legislature for consideration. The Legislature is concerned about how such a system would create additional bidding opportunities for out of state bidders. What key benefits of eProcurement should the research group include in their report to counter this concern? eProcurement systems reduce cost through increased competition by allowing more vendors into the bidding pool thus driving small businesses to lower their costs to compete. eProcurement systems increase access for all bidders including local small, women-owned and minority businesses by providing cost effective access to bidding opportunities that these businesses may not have otherwise. eProcurement systems leverage buying power and increase the effectiveness of strategic - Correct Answer eProcurement systems increase access for all bidders including local, small, women-owned and minority businesses by providing cost effective access to bidding opportunities that these businesses may not have otherwise." "The fiscal year has ended and the procurement office has begun the process of auditing the budget. The comptroller has begun program audits which includes: Providing objective analysis to assist management and those charged with governance and oversight in using the information to improve program operations, reduce cost, and facilitate decision making Examining a governmental unit's managerial and administrative practices for economy and cost efficiency and strive to identify the cause of any cost inefficiencies An assessment of compliance with criteria established by provisions of laws, regulations, contracts or grant agreements or other requirements that could affect the acquisition, protection, use and disposition of the entity's resources and quantity, quality, timeliness, and cost of services the entity produces and delivers. Compliance requirements can be either financial or non-financial Monitoring results - Correct Answer Monitoring results to determine the extent to which a governmental unit has achieved program objectives" "The Buyer receives feedback from a supplier complaining the entity's online procurement process was cumbersome. What action should the Buyer take? Inform the supplier that the system is designed "as-is" and they must learn to work within the constraints of the system and bid on entity work Note receipt of complaint to the Supplier and indicate it has been passed on for review Call the Supplier and explain the complexities and cumbersome nature of the Buyer's work in the system Request feedback from the Supplier related to their experience. Recommend any necessary improvements to the Buyer's supervisor. - Correct Answer Request feedback from the Supplier related to their experience. Recommend any necessary improvements to the Buyer's supervisor." "An end user identifies a bulldozer which is reaching the end of its useful life. What action should the Buyer take? Fill in missing specification information based on last order and issue a PO to an existing cooperative contractor Review the requisition and call the end user to discuss the procurement method options prior to taking next steps Use the available information on the requisition to purchase the replacement using a cooperative contract Create an IFB and solicit based on the information provided on the requisition and award to the lowest price - Correct Answer Review the requisition and call the end user to discuss the procurement method options prior to taking next steps" "The extent to which the procurement function provided the needed goods and services within acceptable quality standards is known as: Efficiency Effectiveness Procedural compliance Economy - Correct Answer Effectiveness" "The Dept. of Disability Services is negotiating the procurement of a newly developed manufactured product. Which of the following persons should be involved on the team to assure that the product meets the prerequisites of the item to be purchased? Procurement Officer Contractor Legal Counsel Certified Engineer - Correct Answer Certified Engineer" "During a negotiation, a vendor becomes unruly and insults one of the negotiation team members. What is the best response? Insult the vendor. Focus on the facts not emotion Take a break. End the negotiation - Correct Answer Focus on the facts not emotion" "When negotiating for a reduction in price, what key elements should the negotiation consider? Vendor's location. Cost Price Analysis Vendor size Vendor's number of employees - Correct Answer Cost Price Analysis" "Which is of the following tactics is NOT an effective approach to conflict resolution? Brainstorming Stonewalling Listening and summarizing Identifying areas of mutual agreement - Correct Answer Stonewalling" "On the negotiation team, Amanda sits quietly and casually watches the other team members' expressions and body language. What role of the team is Amanda playing? The Observer The Leader The Recorder The Facilitator - Correct Answer The Observer" "The state is negotiating a contract for financial services. Which location gives the state the best advantage? At a neutral location At the state central procurement office At the vendor's headquarters Via phone - Correct Answer At the state central procurement office" "What is the purpose of documenting the negotiation process? To make sure the vendor does not provide false information To keep track of the vendor's comments, questions, and clarifications in their proposal To support the state's position in the negotiation To provide fair and open negotiations with transparency and accountability to the public - Correct Answer To provide fair and open negotiations with transparency and accountability to the public" "A user agency is concerned about adding additional transaction time to the procurement cycle by allowing negotiations. What benefits may be discussed with the user agency for why negotiations are important? Negotiations allow the state to select the vendor they have worked with before Negotiations give the vendor the opportunity to meet the parties with whom they will work upon award of the contract Negotiations are allowable under state law Value added to the contract which would not exist without the negotiation such as reduced cost or added quality, functionality, or features - Correct Answer Value added to the contract which would not exist without the negotiation such as reduced cost or added quality, functionality, or features" "One of the primary strategies to having an effective negotiation is to: Ensuring that your negotiation goals are kept confidential from the other party. Resolving decision and removing alternatives before starting negotiations. Clearly defining what a "win" is for the negotiation Promote a focus on interests versus positions. - Correct Answer Promote a focus on interests versus positions." "The state is bidding a large construction project and all bids received exceed the maximum budgeted amount for the project. Negotiations are permitted under the state's law and the state decided that changes to the size of the building may bring the project in under budget. Which goal of negotiation is the state exploring? Scope Clarification Terms and conditions Price - Correct Answer Scope" "What is the best way to prepare all team members and facilitate an understanding of the negotiation strategy prior to the negotiation meeting with the vendor? Discuss the negotiation plan with the decision maker and set up the negotiation meeting with the vendor Develop a finalized negotiation plan and hold a strategy meeting Develop a BATNA followed by dissemination of the BATNA by email to all members Discuss the negotiation plan with the legal counsel and set up the negotiation meeting with the vendor - Correct Answer Develop a finalized negotiation plan and hold a strategy meeting" "What tactic expands the understanding of the vendor's interests and overall expected gain as a resulting from the contract? Watching for non-verbal cues Discussing the BATNA Asking open-ended questions Explaining the state's position - Correct Answer Asking open-ended questions" "Which of the following is a good reason to enter into negotiations? To select a vendor other than the low bidder To select a favored vendor To correct for inaccurate specifications or requirements in the solicitation To address differences in terms and conditions between the parties - Correct Answer To address differences in terms and conditions between the parties" "As the purchasing agent, you have been asked to review a contract file to ensure all required documents are in the file. Your organization keeps pre-award solicitation files and post-award contract files separate. Which of the following documents belongs in the post-award contract file? Evaluation Documents Protest documents Solicitation Documents Notice of Award Documents - Correct Answer Notice of Award Documents" "In the hierarchy of guidelines for interpreting contracts, which rule is considered a secondary rule? Whole Instrument Rule Mechanical Rules Cardinal Rule Common Law Rules - Correct Answer Whole Instrument Rule" "The Department of Transportation is in the middle of a construction contract to repave a major state highway. The project is nearing completion, and the contractor has been meeting expectations and contract requirements throughout the performance period of the contact, including meeting all project deadlines. The Department of Transportation has been paying the contractor each quarter, as set forth by the payment clause of the contract. What type of payment method was used for this contract? Completion Payments Milestone/Progress Payments Success Payments Payments with Retainage - Correct Answer Milestone/Progress Payments" "Which of the following practices can help save time and money associated with contract award protests? Post Award Conference Pre-Proposal Conference. Inspection and Acceptance Debriefing - Correct Answer Debriefing" "A contract administrator for a landscaping contract has experienced several performance issues related to the work being conducted by a subcontractor. What strategy would you recommend to the administrator for dealing with the performance issues? Contact the Prime Contractor to discuss the performance issues of its subcontractor Send a "Show Cause" Letter to the Subcontractor Schedule a Performance Review Meeting with the Subcontractor Send a "Notice to Cure" Letter to the Subcontractor - Correct Answer Contact the Prime Contractor to discuss the performance issues of its subcontractor" "The Procurement Officer is updating their procurement manual and trying to determine when to hold post-award kickoff meetings with suppliers. When should a post-award kickoff meeting be held? Post-award but pre-performance Prior to a post-award planning meeting. When a problem arises with the contract's supplier. Once the State agency has decided how contractor performance will be evaluated, documented, and reported. - Correct Answer Post-award but pre-performance" "In certain cases, it is best practice to hold a post-award kickoff meeting to discuss performance expectations with all interested parties to the contract. What types of contracts are most likely to benefit from a post-award kickoff meeting? All contracts regardless of complexity or number of agencies involved. A large contract with minimal risk that affects a single agency. High risk or complex contracts, or contracts that affect a large number of user agencies. Contracts with suppliers the State has had problems with in the past. - Correct Answer High risk or complex contracts, or contracts that affect a large number of user agencies." "The current janitorial vendor has continued to not adequately clean according to the specified plan in the contract for the Cabinet of Finance and Administration. The Cabinet has contemplated terminating the contract for default but would prefer to motivate the contractor into compliance and performance. What should the Cabinet's Contract Administrator do next? Issue Request for Liquidated Damages Notify the contractor of Rights to Appeal Issue Cure Notice. Issue Notice of Termination for Default - Correct Answer Issue Cure Notice" "Which of the following would NOT be included in a Cure Notice? Request for explanation of contractor's failure to perform. Contractor's right to appeal termination. Statement that termination will occur if cure of the failure is not made within a specified time frame. Invitation to discuss performance failure. - Correct Answer Con