CPPB Final Exam Review – 165 Questions with 100% Correct and Verified Answers

CPPB Final Exam Review – 165 Questions with 100% Correct and Verified Answers The Materials Manager for the Utility department 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? A. Sell is as scrap metal B. Transfer it to another entity C. Sell it via an electronic auction D. Cannibalize it for parts - Correct Answer D. Cannibalize it for parts" "Which of the following types of contracts establishes a source of supply and pricing for specified items or services for a specified period? A. Competitive price contract B. Fixed price contract C. Term contract D. Service contract - Correct Answer C. Term contract" "Privity of contract deals with: A. The parties to a contract having the right to enforce it B. A party having the right to submit a bid C. A party having a right to reject an offer D. Any parties having the right to cancel a contract - Correct Answer A. The parties to a contract having the right to enforce it" "There are about 20 negotiation tactics named in the literature and prep guides such as win/win and good cop/bad cop. Other than these two, name three others and what they mean. - Correct Answer Changing of position - formulate the proposals in a different way, without changing the final result. Gathering information - Ask for information form the other party to clarify their position. Making the cake bigger - offer alternatives that may be agreeable to the other party, without changing the terms" "What can a procurement official learn from looking at an entity's strategic plan? A. How to allocate procurement resources B. How to respond to technology changes C. How to respond to political changes D. Guidance in handling a current crisis - Correct Answer A. How to allocate procurement resources" "During the planning stage of a procurement engagement, an entity client wanted to buy a mid range printer. They then decided that a printer/copier/scanner/fax might be better, but they aren't sure if it's worth the price. What tool can help make the determination? A. Value analysis B. Market survey C. Price analysis D. Cost analysis - Correct Answer A. Value analysis" "During the negotiation process, it may be necessary to: A. Hide your intentions from the other team. B. Rigidly adhere to specific details. C. Anticipate the other party's tactics and plan counter-tactics. D. Conduct brainstorming sessions to develop team options. - Correct Answer C. Anticipate the other party's tactics and plan counter-tactics." "The use of which cost-type contract is prohibited in most jurisdictions and by the Federal government? A. Cost plus incentive fee B. Cost plus percentage of cost C. Cost without fee D. Cost sharing - Correct Answer B. Cost plus percentage of cost" "An agency is revising its document retention schedule. Where should the government entity look for guidance? A. The Federal Acquisition Requirements. B. Legal or statutory requirements. C. The Universal Commercial Code D. Common Law - Correct Answer B. Legal or statutory requirements." "In public contracting, competency refers to: A. Persons representing the vendor. B. Persons of any age entering into a contract. C. Only procurement officials. D. Persons mentally capable and of the age as allowed by law. - Correct Answer D. Persons mentally capable and of the age as allowed by law." "Five (5) days after posting a Notice of Intent to Award, a protest is received from another responder who states that his proposal is the best value for the agency. The protester provides comprehensive, detailed information to support his position and requests that the intended award be set aside. What should be your first step in handling the protest? A. Withdraw the Notice of Intent to Award until the protest is resolved B. Confirm that the protest was received within the timeline for filing C. Allow the protester to clarify his/her best value proposal D. Convene the evaluation committee to reconsider the recommendation of award - Correct Answer B. Confirm that the protest was received within the timeline for filing" "The Statute of Frauds is a 1677 device passed by the English Parliament and carried down to us by common law and the actions of state legislatures that: A. Prevents the validity of any oral contract. B. Requires that all bid submittals be witnessed by a notary public. C. Mandates the posting of bonds against the fraudulent actions of a vendor. D. Requires certain promises and agreements to be evidenced in writing. - Correct Answer D. Requires certain promises and agreements to be evidenced in writing." "The three types of competition found in the market place are: A. Inexact, impure and monastic B. Exact, pure and monopoly C. Exact, pure and monotheistic D. Pure, imperfect and monopoly - Correct Answer D. Pure, imperfect and monopoly" "Price fixing, bid rigging and restraints of trade are prohibited by this first of its kind federal act. A. Federal Trade Commission B. Adam Clayton Powell Act C. Sherman Anti-Trust Act D. Robinson-Patman Act - Correct Answer C. Sherman Anti-Trust Act" "Statutes, ordinances, charters, rules, regulations, policies and procedures are all examples of: A. Administrative law B. Legislative law C. Enabling legislation D. Contract terms and conditions - Correct Answer B. Legislative law" "A contract administrator's duties are normally performed by: A. A hired consultant. B. An employee within the agency. C. A contract manager from a nearby agency. D. The purchasing department manager. - Correct Answer B. An employee within the agency." "Sole source, single source and emergency procurements are examples of: A. The best ways of procuring goods and services. B. Non-competitive methods of procuring goods and services. C. Unauthorized procurement methods. D. Procurement methods of questionable value. - Correct Answer B. Non-competitive methods of procuring goods and services" "Language that covers changes, disputes and breach procedures is included in agreements between parties to protect against: A. Surety risk B. Contractual risk C. Cancellation risk D. Proposal risk - Correct Answer B. Contractual risk" "Your agency's procurement manager has asked you to recommend an approach to an upcoming procurement for drug addiction counseling services. Which of the following possibilities would you put forward as the best approach? A. Develop a detailed specification as to how the contractor must provide the services B. Issue national standards for drug addiction counseling services to all potential respondents C. Work with the using department to develop performance measures you will use to ensure that the contractor meets the needs of the using department. D. Ask the using department for a list of drug addiction counseling protocols that they would be comfortable with. - Correct Answer C. Work with the using department to develop performance measures you will use to ensure that the contractor meets the needs of the using department." "You've just posted/announced the award of a solicitation. Governing body approval is pending and someone calls/writes/emails to protest. Walk me through the steps to resolve the issue. Note: it doesn't matter if your agency has a policy or not. - Correct Answer Review of protest issues by the procurement authority and the user Deny or uphold the protest If denied, appeal to a next higher authority Appeal to agency chief executive or the governing board of the agency Decision by governing board or higher authority is final File a civil action asking for an injunctive relief" "Given the economic and political environment in which most agencies must operate, what is the most effective structure for governmental procurement agencies? A. Providing a completely centralized workforce. B. Delegating unwanted responsibilities to using agencies. C. Establishing a combination of centralized and decentralized operations. D. Establishing an ad hoc decentralized process. - Correct Answer C. Establishing a combination of centralized and decentralized operations." "A company has formally requested a debriefing on why it was not awarded the contract to provide multi-media advertising services. How will the procurement professional prepare for this meeting? A. Prepare a spreadsheet showing the scores and ranks of all of the proposals to provide to the company. B. Make copies of all the scores sheets for the company. C. Prepare a point by point comparison of the company's proposal with all of the other proposals. D. Prepare a listing of the significant strengths and weakness of the company's submitted proposal. - Correct Answer D. Prepare a listing of the significant strengths and weakness of the company's submitted proposal." "A good bid specification does all of the following except: A. Allow the vendor to choose which requirements he will meet. B. Identify the minimum requirements. C. Allow for maximum competition. D. Identify testing methods to determine compliance. - Correct Answer A. Allow the vendor to choose which requirements he will meet." "Name three ways of disposing of surplus agency property. - Correct Answer Ways to dispose of surplus agency property include: homeless use negotiated sales public sales based on GSA's determination of the property's highest and best use" "The service contract to provide transportation for seniors will expire within thirty calendar days. The human services department is requesting that the contract be renewed at the same prices, terms, and conditions for an additional year because the provider has delivered exceptional service. You review the contract and advise the department that the contract cannot be renewed. What is the basis for denying the renewal? A. No performance evaluations have been completed on the contractor. B. Service segmentation of needed transportation services is being discussed by the agency. C. No contract renewal clause is included in the original contract. D. No transportation master plan is included in the statement of work. - Correct Answer C. No contract renewal clause is included in the original contract." "What is outsourcing? Name something good or bad about it. - Correct Answer Outsourcing is when an organization contracts outside of the organization for a product, service, or business process that had previously been provided internally. Outsourcing benefit include cost savings by the contractor being able to provide the benefits of economies of scale. Outsourcing disadvantage include losing key skills and equipment by the organization being too dependent on the contractor." "Indemnification, workers' compensation insurance and bonds are examples of things we include in our solicitations and contracts to deal with what type of risk? A. Proposal B. Surety C. Schedule D. Contractual - Correct Answer B. Surety" "What's the difference between a partial payment and a progress payment? - Correct Answer Partial payment is used to allow the contractor to invoice the government upon delivery and acceptance of partial deliveries of goods or performance of services. Progress payments assure acceptable performance and progress on a contract. Commensurate with the progress made on the contract and are a method for financing the contractor throughout the life of the contract." "The benefit of using a fixed-price with escalation contract would be: A. The vendor is protected against unusual price increases. B. The buyer has less contract administration to deal with. C. The vendor has increased contract risk and the buyer has decreased contract risk. D. The buyer can change the escalation indexation at any time during the contract. - Correct Answer A. The vendor is protected against unusual price increases." "The ABA Model Procurement Code lists six methods of source selection. Name any three of them. Extra credit for all six. - Correct Answer Methods of source selection include: · competitive sealed bidding · competitive sealed proposals · small purchase procedures · sole source procurement · emergency procurements · competitive selection procedure for designated types of services" "The extent to which the procurement function provided the needed goods and services within acceptable quality standards is known as: A. Efficiency B. Effectiveness C. Procedural compliance D. Economy - Correct Answer B. Effectiveness" "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? A. Value analysis B. Surveillance techniques C. Progress meetings D. Final inspections - Correct Answer B. Surveillance techniques" "Name three basic types of files that should be maintained by a procurement office. - Correct Answer · Solicitation Files (award documents, evaluation documents, solicitation, etc.) · Contract Files (executed contract, required bonds, insurance certificates, etc.) · Personnel Files" "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? A. Use of p-cards B. Cooperative purchasing C. Standardization D. Bench-marking - Correct Answer C. Standardization" "Indemnification clauses are added to our terms and conditions to protect the agency from: A. The acts of the vendor B. The acts of the agency C. The acts of third parties D. The acts of our customers - Correct Answer A. The acts of the vendor" "Name two methods or things to consider in dealing with tie low bids, both of which are responsive and responsible. - Correct Answer Two things to consider in dealing with tie low bids are small business concerns that are also labor surplus area concerns, local preference, if they are still equal drawing by lot." "Under which of the following does the agency own the goods in transit? A. FOB destination, freight collect B. FOB destination, freight prepaid and added C. FOB destination, freight prepaid and allowed D. FOB origin - Correct Answer D. FOB origin" "Other than rules, regulations, policies and procedures, name at least three specific things that should be found in a procurement manual. - Correct Answer Duties of staff Signing authorities Guidelines on receiving and inspection" "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: A. Not registering with the agency B. Not responding to solicitations C. Ignoring phone calls and emails D. Filing protests of awards - Correct Answer D. Filing protests of awards" "A warehouse manager received a bill charging him $200 related to demurrage. What is demurrage and/or why did he get charged? - Correct Answer Demurrage is a fee charged by a carrier against a consignee, consignor, or other responsible party to compensate for the detention of the carrier's equipment in excess of allowable free time for loading, unloading, re-consigning, or stopping in transit. The term is also used by suppliers of material delivered in a variety of returnable containers, such as gas cylinders, rail containers and equipment." "Program budgets: A. Relate expenditures and revenues to each other. B. Relate expenditures and revenues to public goals. C. Relate expenditures and revenues to workloads. D. Relate expenditures and revenues to line item accounts. - Correct Answer B. Relate expenditures and revenues to public goals." "Please put these items in their normal, proper sequence (not your agency's): Addendum; Closing date; draft solicitation review by department; short-listing; Board/commission approval of award; oral presentations by vendors. Extra credit: what kind of solicitation is being discussed here? - Correct Answer Draft solicitation review by department Addendum Closing date Short-listing Oral presentations by vendors Board/commission approval of award Extra Credit: The solicitation being discussed is a Request for Proposals (RFP)" "Under the Uniform Commercial Code, the failure of a seller to deliver contracted goods would allow the buyer to: A. Obtain them from the next lowest bidder. B. Obtain them at the current market price and charge the seller the difference. C. Cancel the contract and rebid. D. Invoke liquidated damages. - Correct Answer B. Obtain them at the current market price and charge the seller the difference." "The four types of fixed price contracts are: A. Firm, percentage, incentive and escalation. B. Firm, escalation, incentive and redetermination. C. Percentage, escalation, redetermination and firm. D. Cost sharing, escalation, incentive and percentage. - Correct Answer B. Firm, escalation, incentive and redetermination." "A solicitation document currently on the street contains a clause that has been revised by an addendum, which then turns out to be incorrect. What happens if the bid opening date hasn't occurred yet? What happens if the bids have been opened? - Correct Answer If the bid opening date hasn't occurred yet I would do another addendum with the correct information. If the bids have been opened I would cancel the solicitation and re-issue with the correct information." "Some agencies provide monetary assistance to qualified citizens by the use of smart cards. What is a smart card and how does it work? - Correct Answer A smart card is an electronic wallet with an embedded chip that stores data including an individual's complete personnel and medical records." "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? A. Value analysis B. Vendor selection C. Demand analysis D. Market analysis - Correct Answer D. Market analysis" "Careless County recently lost an important court case in the State Supreme Court. The court decision will now impact every county in the state, and the decision may be used to argue other cases as well in other jurisdictions in the future. The type of law developed through court case decisions is known as: A. Administrative Law B. Statutory Law C. Common Law D. Contract Enforcement Law - Correct Answer C. Common Law" "Explain the difference between general and special terms and conditions in a solicitation document. - Correct Answer General terms in solicitation are the standard clauses (boilerplate). Special terms in a solicitation are specific to the solicitation." "Which is a true statement about Life Cycle Costing? A. Done correctly, will result in a lower acquisition price B. Is synonymous with the total cost of ownership C. Includes operating and maintenance costs but does not reflect disposal costs D. Focuses on maintenance costs - Correct Answer B. Is synonymous with the total cost of ownership" "Procurement Director to buyer: "The mayor just called and he wants the Hansen project expedited. Take care of it." Buyer to Hansen contractor: "How's it going?" Hansen contractor: "Great. Everything's going well and delivery is on schedule." Buyer: "Glad to hear it. I'll check back with you again in a week or so." What specific term defines what the buyer has done? What is the definition of what he should have done, based on the instructions from the procurement director? - Correct Answer The buyer has done a Follow-up. Based on the instructions from the procurement director the buyer should expedite (an attempt to rush the contractually agreed upon delivery time or schedule)." "If considering contract termination, the agency should first: A. Take punitive action against the contractor. B. Stop accepting delivered products or services offered by the contractor. C. Start a file that documents the conflicts. D. Notify the authorities. - Correct Answer C. Start a file that documents the conflicts" "Performance specifications are also known by this name, which may be said to contain a word that is associated with "good times." - Correct Answer functional specifications" "As part of an initiative to handle the 'slip and fall' cases filed against the entity, the Legal Department would like to engage a firm of medical professionals to provide examinations of the plaintiffs, expert analysis of the plaintiff's injury claims and their medical records. Experience and results are the main considerations for the award. Which solicitation method is recommended and why? - Correct Answer The solicitation method recommended would be a Request for Proposals (RFP) as this would fall under professional services and the best professional for the project may not come with the lowest possible price. This solicitation method would allow the agency flexibility to award based on other evaluation criteria." "Suspension and debarment are discretionary actions for the protection of an agency from irresponsible vendors/contractors, rather than forms of punishment, and preclude a vendor from future participation in bidding. What is the principal difference between them? - Correct Answer The principle difference is that a debarment may exclude a vendor from future solicitations and a suspension could only be for a period of time." "An entity issues cell phones for its employees. Initially, employees could request a make and model of their choosing. Now the entity purchases several different types of phones to meet employees' requirements. This is causing inefficiencies. What action(s) could be taken to address and correct the inefficiencies? - Correct Answer Standardization" "Supplier lists are developed and maintained by an agency to: A. Accommodate source selection through solicitation invitations. B. Track budget encumbrances. C. Record transaction activity by purchase. D. Compare costs and perform value analyses. - Correct Answer A. Accommodate source selection through solicitation invitations." "One of your departments claims a piece of equipment is a sole source. Name at least three steps that you might take before allowing this purchase to proceed. - Correct Answer Require a justification from the requesting agency explaining why this is the only source for the requirement. Document research conducted to verify the vendor as the only known source Conduct a price justification to make sure that it is fair and reasonable." "A termination for convenience clause: A. Requires negotiation to determine any allowable costs. B. Allows the agency to terminate a contract without cause and limits the contractor's profit. C. Allows for the temporary exclusion of a contractor from participating in a procurement. D. Describes the supplies, services or construction to be cancelled. - Correct Answer B. Allows the agency to terminate a contract without cause and limits the contractor's profit." "Name five things that are commonly found on a purchase requisition - Correct Answer Name of entity, vendor name, date of PO creation, a description of the requested items, delivery schedule, and terms of payment." "The Procurement Officer has included amendment procedure language in the agency's solicitation boilerplate. What type of risk is being covered? A. Schedule risk B. Contractual risk C. Proposal risk D. Price risk - Correct Answer Contractual risk" "The city has had a term contract in place for two years. The original term of the contract was for up to three years. Usage of the contract has declined to almost nothing. The city purchasing manager has decided to cancel the contract. Which of the following methods best addresses this action? A. Termination for default B. Issue a show cause notice C. Termination for convenience D. Issue notice of suspension - Correct Answer Termination for convenience" "You've just completed the closeout process for an annual contract for the rental of copiers. Throughout the year you've kept notes on what issues and problems your agency has experienced. None of the issues and problems has required making any contract changes and has been easily resolved with the contractor. However, you want to ensure that the next time you bid this requirement that you address these issues in the contract. Also, you want to make sure that you are aware of any issues or problems the contractor has had. You've arranged for a meeting with the contractor and key end-users to discuss the contract and lessons learned. When you finish the current phase of the contract management cycle, what is likely to be the next phase? A. Monitoring performance on the current contract. B. Analysis of the current contract. C. Identifying contract risks and establishing contract goals to manage risks D. Specifying need - Correct Answer Specifying needs for a subsequent solicitation." "The Buyer has just been informed that a project planned for June has been rescheduled for April due to the weather being better than predicted. The Buyer then contacts the contracted supplier to change the material delivery date. What delivery action is this? A. Routing B. Demurrage C. Follow-up D. Expedite - Correct Answer Expedite" "The Procurement Manager has been tasked with a new assignment. He is evaluating the market to determine how the Procurement Department should allocate its resources and focus its efforts to best meet its strategic sourcing purchasing plan. What activity is being done? A. Demand Analysis B. Supply Positioning C. Spend Analysis D. Projecting Procurement Expenditures - Correct Answer Supply Positioning" "The Supply Positioning Analysis enables the Procurement Professional the opportunity to manage procurement related to: A. Expense/Cost vs. Risk of Supply B. Budget vs. Cost C. Outputs vs. Outcome D. Supply vs. Demand - Correct Answer Expense/Cost vs. Risk of Supply" "When procuring software, one of the important areas to consider is the concept of source code escrow, which is the holding of the code used to write the software by: A. The software vendor. B. A neutral third party. C. The agency in a sealed envelope inaccessible to the IT department. D. The Source Code repository of the U.S. government. - Correct Answer B. A neutral third party." "Put the following 6 items in their standard (not your agency's) sequence of occurrence: pre-bid vendor conference; purchase requisition; issue the solicitation; award recommendation; PO; addendum. - Correct Answer purchase requisition issue the solicitation pre-bid vendor conference addendum award recommendation PO" "Why is the Request for Proposal (RFP) process often perceived as problematic by an agency's leadership? A. The award decision is very quantifiable. B. The award decision is based on qualitative variables. C. The price is rarely known on award. D. The outcome of the RFP process is difficult to justify. - Correct Answer B. The award decision is based on qualitative variables." "1. An entity purchases several different types of mobile phones to meet employees' preferences. This is causing inefficiencies. What action can be taken to address and correct the inefficiencies? a. Creation of performance specifications b. Sole sourcing c. Benchmarking d. Standardization - Correct Answer d. Standardization" "2. A buyer has been invited to join a supplier account representative for lunch to discuss the performance of a contract. How should the buyer respond to the invitation? a. Decline the supplier's offer and suggest a meeting in the office b. Join the supplier for lunch, but pay for himself c. Ask the end-user to join the supplier and the buyer for lunch and count it as a business meeting d. Report the supplier to the supervisor - Correct Answer a. Decline the supplier's offer and suggest a meeting in the office" "3. A buyer has been working on a solicitation for several days. Now the end-users have requested that the buyer mail the bid only to local suppliers. How should the buyer respond to this request? a. Add language to the bid that only local suppliers can submit proposals b. Explain that agency procedures require that all bids be electronically posted to allow for open and fair competition c. Explain that he can only put "Buy America" language in bid specifications d. State that the WTO requires the agency to support the NAFTA program - Correct Answer b. Explain that agency procedures require that all bids be electronically posted to allow for open and fair competition" "4. The ratio between inputs such as staff hours or salary and outputs is a way of measuring what attribute? a. Efficiency b. Effectiveness c. Contributions d. Progress - Correct Answer a. Efficiency" "5. Legislation enacting a sustainable procurement initiative was passed during this legislative session. The agency has a limited staff and resources with which to implement the legislation. What type of program would be most easily implemented? a.Alternative fuel vehicles b.Energy efficient equipment c.Recycled paper d.Comprehensive recycling program - Correct Answer c.Recycled paper" "6. At an entity-hosted small business educational and outreach workshop, the entity small business program coordinator noticed that only a few suppliers are actively participating in asking questions and discussion. In reaction, she works diligently to engage other suppliers who are not contributing. What role is she assuming? a. Encourager b. Observer c. Information seeker d. Gate keeper - Correct Answer d. Gate keeper" "7. The city's IT department has a need to purchase twenty copies of a how-to-use over-the-counter software book for various user departments within the agency. The book is commonly available and it is estimated that the total cost would be $900, which is below the established bid threshold. The buyer has confirmed that the book is not currently on any agency contracts. Which type of purchase is considered most economical in this case? a. Emergency b. Sole Source c. PCard d. Invitation for bids - Correct Answer c. PCard" "8. A buyer wishes to enter into a cooperative purchase with a regional alliance that could save a great deal of money. What is the buyer's first step? a. Determine if there is legal authority to do this b. Determine if the cost is advantageous c. Determine if local suppliers are impacted d. Determine if your terms and conditions are in compliance - Correct Answer a. Determine if there is legal authority to do this" "9. While on vacation the Chief Procurement Officer left a Procurement Manager in charge of operations via an interoffice memo. The Procurement Manager was faced with an emergency purchase that needed signature for $50,000. What gives him the authority to sign for this emergency purchase? a. Apparent authority b. Express authority c. The Procurement manager has authority to sign because it is an emergency purchase d. Implied authority - Correct Answer b. Express authority" "10. An agency with a local small business preference program is accepting bids for a roofing project. Only Company C is in the local jurisdiction. Businesses located outside the local jurisdiction will have 5% of the bid amount added to their total bid amount. Company "A" bids $49,300. Company "B" bids $49,150. Company "C" bids $51,650. Company "D" bids $51,640. Which company should receive the award based on total low bid? a. Company A b. Company B c. Company C d. Company D - Correct Answer b. Company B" "A city has established a sustainable procurement program. One of the mandates of the program is to find other uses for the materials used to ship their purchased products, like cardboard boxes and wood pallets. This is demonstrating what sustainability action? Recycling the materials Remanufacturing the materials Reusing the materials Recycling the materials - Correct Answer Reusing the materials" "How are budgets used in a organization? To audit and review a department's performance. As a policy document and a financial plan. To improve processes To track the performance of the departments. - Correct Answer As a policy document and a financial plan." "Price and availability, supply and demand factors, and price stability are all related to: A. Value analysis B. Vendor selection C. Demand analysis D. Market analysis - Correct Answer D. Market analysis" "You've opened some bids and identified the lowest responsive/responsible bidder. However, due to internal issues in the using department, several months have passed without the award being made. Before pressing on, what action, if any, should be taken with the low bidder? - Correct Answer I would contact the bidder and request a written extension of their bid price through a specific date prior to the bid price expiration date." "Failure of a bidder to return the number of signed copies requested, failure of a bidder to acknowledge receipt of an addendum or failure to execute a required certificate are often considered: A. Deal-breakers B. Responsibility issues C. Minor irregularities D. Major irregularities - Correct Answer C. Minor irregularities" "What's the difference between a protest and a dispute? - Correct Answer A dispute is a contractual disagreement between parties. A protest is a written objection by a potential interested party to a solicitation or award of contract." "Which of the following could be considered a conflict of interest? A. Extensive product knowledge B. Previous employment in the private sector. C. Volunteer activities within the community. D. Personal financial investment in a supplier. - Correct Answer D. Personal financial investment in a supplier." "There are 6 required elements of a contract. List any three of them and what they mean. - Correct Answer Offer and Acceptance - response to a solicitation and an indication that an offeree is bound by terms of the offer. Definiteness - specificity; important or material terms of an agreement which a specifically expressed. Legal Consideration - something of consideration which is exchanged between parties that serves to form or bind a contract. Mutuality of obligation - all the parties are obligated or none of them are obligated. Competent parties - classes persons that the law deems are capable of entering into an agreement. Legal Purpose - can only be for what is allowed under the law." "What are the 7 Rights of Procurement? - Correct Answer Right Materials Right Quantity Right Time Right Place Right Source Right Service Right Price" "Express Authority - Correct Answer Explicitly given in direct language (buyer)" "Implied Authority - Correct Answer Inferences and reasonable deductions arising out of the conduct of the principal toward the agent and the agent's actions. (contractor onsite)" "Apparent Authroity - Correct Answer Occurs when a principal allows or permits a person to function in a capacity that creates the illusion that the persin is an authrized agent of the principal. (agent is doing it, and the government agency doesn't tell the agent they can't do it.)" "Leader - Correct Answer moving team to accomplish the task." "Team Facilitator - Correct Answer NOT a member of the team so they can remain neutral in the decision making." "Team Recorder - Correct Answer Write down the team's key points, ideas, and decisions." "Time Keeper - Correct Answer Keep on task and moving along" "Forming - Correct Answer Team comes together/members get acquainted" "Storming - Correct Answer clarifying and understands goals and ensuring the functioning of the team." "Norming - Correct Answer members begin to agree in a common goal, assign individual tasks and define a set of rules and roles." "Performing - Correct Answer teams begins accomplishing goals" "Adjourining - Correct Answer winding up and disbanding" "Initital Training - Correct Answer typically provided to new employees to expose them to the body of knowledge that will be required to comprehend and perform the duties of their position." "Horizontal Training - Correct Answer broad-based training to develop employee diversification and focus on special skills. This training provides for necessary inter-departmental interactions." "Vertical Training - Correct Answer specialized, in-depth training on specific topics to prepare the employee for upward mobility and promotional opportunities." "Remedial Training - Correct Answer utilized to improve employee job performance. It provides training to increase employee skills, resulting in improved performance of job duties." "Retraining - Correct Answer prepares the employee for revisions in current processes and procedures." "1. When all mandatory requirements of a bid are met, what is the value of competitive quotes and competitive sealed bids? a. Drives a decision based on price b. Provides evaluation guidelines on which to base the award c. Provides a reliable indicator of a robust supplier market d. It has no value - Correct Answer a. Drives a decision based on price" "2. What is the purpose of a cost analysis? a. Compares each price quoted the entity as a result of the bid process b. An attempt to project reasonable cost in a cost benefit analysis c. Helps determine the supplier's costs actually incurred for nonstandard items d. Helps determine functional requirements at the lowest possible cost without impacting need and suitability - Correct Answer c. Helps determine the supplier's costs actually incurred for nonstandard items" "3. The Sheriff's Department is planning on acquiring 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? a. $11,000.00 b. $29,000.00 c. $18,000.00 d. $36,000.00 - Correct Answer b. $29,000.00" "4. Department of Water Resources is preparing a bid document for a new and complex composite water meter. What action should the buyer take to better ensure responsive bids? a. Use brand name or equivalent specifications b. Determine the industry standards for meter suppliers c. Determine the life cycle cost of the meter d. Schedule a pre-bid conference - Correct Answer d. Schedule a pre-bid conference" "5. An agency is deciding whether to purchase new or used riding mowers. What is the most appropriate analysis method to use to make this decision? a. Historical Price Analysis b. Life Cycle Cost Analysis c. Cost Analysis d. Price Analysis - Correct Answer b. Life Cycle Cost Analysis" "6. Five entity-owned buildings are under renovation and parts of these renovations include replacing the flooring. Each building has an estimated 4,400sq. ft. of floor surface that will require new flooring. 65% will be tile and 35% will be hardwood. If the tile is $8.00 per sq. ft. for the supply and install and the hardwood is $11.00 per sq. ft. for the supply and install, what is the estimated cost of this project? a. $39,820.00 b. $418,000.00 c. $218,900.00 d. $199,100.00 - Correct Answer d. $199,100.00" "7. The sheriff's department is requesting that a solicitation be put out for commissary items for the county jail. To assist in maintaining order and for the safety of county employees and the inmates, the department is providing the buyer with a list of specific items to be procured. Little to no deviation from this list will be allowed. Under the circumstances, what is the most appropriate type of specifications that the buyer should use? a. Combination b. Design c. Brand name or approved equal d. Performance - Correct Answer c. Brand name or approved equal" "8. A Department Manager has requested that the Procurement department issue a Request for Bids for their yearly supply of pipe and fittings. The buyer researched the market and found pricing for pipe and fittings remained relatively stable. What type of contract should the buyer recommend? a. Definite quantity term contract b. Spot Purchase c. Time and Materials Contract d. Term Contract - Correct Answer d. Term Contract" "9. The corrections department has a budget of $1,000,000 annually for the purchase of frozen vegetables. The buyer will issue an invitation for bids. How should the budget value be handled in the solicitation? a. Should be included to help the bidders understand their effort or quality b. Should be included to create a level playing field which enhances the quality and competitiveness of responses c. It is non-essential information for formulating a bid for this type of procurement d. Including the budget will tend to push up the bid values - Correct Answer c. It is non-essential information for formulating a bid for this type of procurement" "10. An agency issued an Invitation to Tender with the lowest responsive and responsible bidder as criteria for award. Four contractors submitted bids. The low bidder was a contractor with whom the entity had documented performance issues in the past. The last contract had ended with a Show Cause letter for poor performance when the contract term ended. What would be the most appropriate step for the entity to take to ensure the project will be completed on time and within budget? a. Bypass the low bid and award to the next responsive and responsible bidder b. Conduct a post-award start-up conference c. Conduct a debriefing d. Issue a conditional award subject to contractor submitting a larger performance bond than originally requested - Correct Answer a. Bypass the low bid and award to the next responsive and responsible bidder" "A city has established a sustainable procurement program. One of the mandates of the program is to find other uses for the materials used to ship their purchased products, like cardboard boxes and wood pallets. This is demonstrating what sustainability action? Recycling the materials Remanufacturing the materials Reusing the materials Recycling the materials - Correct Answer Reusing the materials" "How are budgets used in a organization? To audit and review a department's performance. As a policy document and a financial plan. To improve processes To track the performance of the departments. - Correct Answer As a policy document and a financial plan." "In a negotiation meeting, you notice that the contractor's proposed project manager starts to frown each time the topic of milestones is talked about. What should you do? A. Assume that the proposed milestones are too aggressive. B. Ask the contractor if he can meet the proposed milestones. C. Offer to change the milestones. D. Mention that the milestones are not negotiable. - Correct Answer B. Ask the contractor if he can meet the proposed milestones." "Total Cost of Ownership (TCO) Life Cycle Costing (LCC) 4 cylinder car 8 cylinder SUV car $24,000 $20,000 Both vehicles will perform as required for the agency. In addition to gas, maintenance, and trade-in value, what other information do you need to determine the total cost of ownership of each vehicle in order to make a decision? Registration/licensing fees, insurance costs, acquisition costs Estimated wear and tear costs Security costs Leasing costs - Correct Answer Registration/licensing fees, insurance costs, acquisition costs" "Which contract pricing strategy is most undesirable for the agency? Fixed Price Cost Reimbursement Time and Materials Cost plus percentage of cost - Correct Answer Cost plus percentage of cost" "F.O.B. Destination point is New York City; F.O.B. Destination Supplier A Supplier B Supplier C Item cost $9,000 $9,025 $9,050 Originating: Los Angeles Miami Boston Freight: $400 $350 $200 Quoted $9,400 $9,375 $9,250 Which supplier is the lowest bidder? Supplier A Supplier B Supplier C - Correct Answer Supplier C" "A contractor has appealed a decision rendered by the authorities. What determines if the contractor must continue working? a. Contract termination clause b. Contract terms and conditions c. Contractor's scope of work d. Request for Equitable Adjustment (REA) - Correct Answer b. Contract terms and conditions" "An agency's warehouse operator received a shipment of 50 boxes of screws. After a cursory inspection, the operator begins using the screws immediately. After using about twenty of the screws over the next 2 days, the operator is disturbed by the fact that 8 of the 20 screws used, cracked after about six hours of use. At that point the operator started to inspect the remaining boxes and realized that several of the screws in each box appeared to have a crack or had what looked like a weak spot in the middle, concluding that the screws were defective. The operator calls the seller and lets him know he is revoking acceptance of the shipment. The seller says he cannot revoke the shipment because the goods were accepted 2 days ago. Legally, what is the best explanation of this situation? a. Within a reasonable amount of time, the agency has a right to revoke acceptance when they become aware of a latent defect. b. Because - Correct Answer a. Within a reasonable amount of time, the agency has a right to revoke acceptance when they become aware of a latent defect." "An award for a large construction contract has been made and the post-award conference has taken place. What should the contracting office do next? a. Make sure the contractor understands the technical requirements b. Produce a formal report summarizing the major issues and identify issues not resolved c. Discuss payment proceedings d. Schedule a follow up meeting to monitor performance - Correct Answer d. Schedule a follow up meeting to monitor performance" "An agency purchases color toner for their printers from a supplier through a bid process. The delivery of the toner has been an issue and recently the cartridges have been malfunctioning in the printers. What should the buyer do first? a. Terminate the contract for non-performance b. Document the performance in the supplier file and notify the supplier for corrective action c. Purchase the toner from the next low bidder d. Finish the contract and remove the supplier from the next bid - Correct Answer b. Document the performance in the supplier file and notify the supplier for corrective action" "A buyer was informed that the roof of a new building delivered for official occupancy six months ago, was leaking. A third party roof engineer hired by the agency determined that the leaking was due to the inconsistent mil thickness of the roofing membrane material. The buyer can request the roofing manufacturer to compensate them for what reason? a. Latent defect b. Patent defect c. Substantial completion d. Acceptance of minor nonconformities - Correct Answer a. Latent defect" "A contract is issued for a road resurfacing project. The contractor commences the work but after a day, phones the buyer to say that the project will be delayed. The contractor states the specifications were not accurate and there is a requirement to add aggregate to raise the road level. What is the buyer's first step? a. Issue a purchase order for the additional aggregate b. Phone the project authority to find out when the contractor started c. Contact the legal department d. Review the contract with the project authority and the contractor to determine the problem - Correct Answer d. Review the contract with the project authority and the contractor to determine the problem" "The county has contracted with a band to perform at the State Fair. The band must arrive two days prior to the concert date to prepare. Five days prior to when the band was to arrive, the county experienced a severe storm that caused major damage to the stage. As a result, the band had to find and secure, at their expense, another local location for one day to practice for their show. What change must the county make to the band's contract? a. Complete a change order to allow for the change b. Move the concert to another venue c. Make a reasonable equitable adjustment d. Delete a day of work form the Band's contract - Correct Answer c. Make a reasonable equitable adjustment" "An agency is dealing with the poor performance of one of its contractors. The building manager tried to resolve the problem with the on-site supervisor, but there was no change. What is the next step the agency should take? a. Terminate the contract for poor performance b. Contact legal representative for breach of contract c. Contact the on-site supervisor again to work on the issues d. Contact the contractor to resolve the issues - Correct Answer d. Contact the contractor to resolve the issues" "An agency hired an architect through a competitive process to design a new civic center. After the conceptual design was approved, the agency's council pushed the project back five years due to a recession. If language in the contract permitted it, what would be the most likely step for the agency? a. Termination for Cause b. Termination for Convenience c. Declare Force Majeure and Terminate the Contract d. Suspend the Contract until funds are available - Correct Answer b. Termination for Convenience" "The operation of a municipal owned campground is licensed to ABC Corporation. 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? a. Bilateral modification b. Change Order c. Amendment d. Unilateral modification - Correct Answer d. Unilateral modification" "Telling a contractor what is an expected outcome and leaving the how-to up to them is the basis of: A. Managed competition B. Make-or-buy decision C. Performance Contracting D. Competitive Sealed Bidding - Correct Answer Performance Contracting" "Performance specifications are also known by this name, which may be said to contain a word that is associated with "good times." - Correct Answer Functional specifications" "A county has a multi-year contract to provide land use planning services for a forthcoming park renovation. Due to a severe funding shortage, all non-critical services have been put on hold for a year (at the earliest). The county has decided to cancel the contract and re-solicit the services when funding is available. Which of the following is the best cancellation method? A. Termination for Default B. Issuance of a Cure Notice C. Termination for Convenience D. Issuance of a Notice of Suspension - Correct Answer Termination for Convenience" "The City just finished negotiations on a $35,000,000 contract for software implementation services. It is expected that it will take three years for the software to be completely installed and accepted. What type of payment mechanism would be the most appropriate? A. Progress payments B. Partial payments C. Milestone payments D. Completion payment - Correct Answer C. Milestone payments" "When a contract dispute winds up in court and the judge issues a ruling, it creates judicial precedent. That means the decision is binding on: A. Only the losing party in the dispute. B. Only the public agency whose contract was at issue. C. All public agencies within that court's jurisdiction. D. All public agencies in the country. - Correct Answer All public agencies within that court's jurisdiction." "Procurement Director to buyer: "The mayor just called and he wants the Hansen project expedited. Take care of it." Buyer to Hansen contractor: "How's it going?" Hansen contractor: "Great. Everything's going well and the project is on schedule." Buyer: "Glad to hear it. I'll check back with you again in a week or so." - Correct Answer The buyer has done a Follow-up. Based on the instructions from the procurement director the buyer should expedite (an attempt to rush the contractually agreed upon delivery time or schedule)." "The loading dock crew at an entity warehouse took receipt of a shipment from a supplier. One day later the shipment was inspected and damaged goods were identified. When the supplier was notified they claimed that the entity had accepted the goods and that they (the supplier) were no longer responsible. What should the entity do first? a. Immediately return the damaged goods to the supplier b. Contact the user department to see if they will accept the damaged goods c. Remind the supplier that taking receipt of a shipment is not the same as accepting a shipment d. Find another supplier and break the contract with this supplier - Correct Answer Find another supplier and break the contract with this supplier" "New kitchen equipment in the Governor's residence kitchen was competitively bid, awarded 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 the General Services 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? a. Call the supplier to see if the order can be expedited b. Cancel the order and buy the equipment locally c. Go forward with the project as it is currently scheduled in the contract documents d. Review the order acknowledgement to check on the estimated ship date of the equipment - Correct Answer a. Call the supplier to see if the order can be expedited" "The buyer contacts Widgets-R-US to see if an item can be shipped sooner than what had been originally contractually agreed upon. The supplier states they can deliver in one week. What should the buyer do? a. Thank the supplier and wait for the delivery to arrive b. Notify the ordering department that the item will arrive in one week c. Send the supplier an amended purchase order to accept d. Cancel the delivery - Correct Answer c. Send the supplier an amended purchase order to accept" "A buyer ordered books from a contracted supplier, which would be used by students when school begins in two months. The following Monday, she received confirmation from the contractor confirming that the books have been received by the shipping company; however on Tuesday, she is 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? a. Demand the contractor ship more books with a different carrier in order to meet the delivery parameters set forth in the contractual agreement b. Declare this delay unforeseeable and allow the contractor a reasonable amount of additional time for delivery c. Declare this delay as grounds for default and issue a cure letter to the contractor d. Refer to tort law and procedures in her jurisdiction - Correct Answer b. Declare this delay unforeseeable and allow the contractor a reasonable amount of additional time for delivery" "The statewide master contract for furniture systems requires that the supplier maintain safety stock levels that can accommodate the state's anticipated short-notice requirements due to lack of warehouse space in remote areas of the state. What type of inventory management is this? a. First-In, First-Out b. Min/max levels c. Last-In, First-Out d. Just-in-Time - Correct Answer b. Min/max levels" "While conducting post-award activities, the procurement staff realizes that the delivery schedule is lagging behind. What should the buyer do to avoid problems with the delivery requirements? a. Expedite the deliveries b. Remind the supplier of the performance risk clause c. Follow-up with the supplier d. Enact quality assurance steps - Correct Answer Follow-up with the supplier" "What action should always be taken when an order is delinquent? a. Document it b. Investigate it c. Protest it d. Accept it - Correct Answer Document it" "Good inventory management focuses on what goal? a. Providing internal customers with as many different choices as possible b. Eventually discontinuing all goods maintained in inventory c. Minimizing expenses while maximizing supplies d. Shifting all supplies to Just-in-Time management - Correct Answer Minimizing expenses while maximizing supplies" "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? a. LIFO b.FIFO c.JIT d.Procurement cards - Correct Answer b.FIFO" "Special chemical-resistant valves for the waste water treatment plant would be classified as what type of item? a. Class A b. Class B c. Class C d. Unclassified - Correct Answer Class A" "What can a buyer learn from looking at an entity's strategic plan? a. How to respond to political changes b. Guidance in handling a current crisis c. How to respond to technology changes d. The allocation of procurement resources - Correct Answer The allocation of procurement resources" "An entity in Canada wishes to forecast its use of indoor and outdoor pool facility chemicals. Which of the following methods best depicts the usage trends? a. Fixed period method b. First-In, First-Out c. Weighted moving average method d. Economic Ordering Quantity method - Correct Answer Weighted moving average method" "A buyer is responsible for the purchase of diesel fuel. In order to best meet this agency's needs, what must the buyer do? a. Conduct time series forecasts to better predict future costs b. Constantly research and scan the market for changes and trends c. Conduct a cost/benefit analysis of potential acquisition methods d. Determine when and where to curtail expenditures in the event of revenue shortfalls - Correct Answer Constantly research and scan the market for changes and trends" "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? a. Conduct a total cost of ownership analysis b. Conduct a cost