CPPB DOMAIN II - PROCUREMENT
PLANNING & ANALYSIS EXAM
QUESTIONS AND ANSWERS
Inter-sector effeciency - ANSWER-Determines whether or not the cost of a
government activity yields more benefits to society than it if remained in private
sector.
Inter-program efficiency - ANSWER-Allocates resources to program that produces
greatest net benefit. e.g. give more money to the police for the youth or give more
money to the youth program itself.
Intra-program efficiency - ANSWER-Determines if resources should be combined to
maximize the benefits of any given expenditure increement.
Line Item Budgets - ANSWER-Fixed budgets with money appropriated for a
particular period, usually one year.
Disadvantages of Line Item Budgets - ANSWER-Lack of focus on purchasing goals,
no criteria for evaluation of goods/services, trade offs among services impossible to
determine, encourages "use it or lose it" mindset.
Performance Budgets - ANSWER-Focuses on improving management of service
delivery, while yielding lowest unit cost. Focus mainly on lowest cost.
Program Budgets - ANSWER-More elaborate, more long range/multi-year plans,
greatest benefit for the cost. Focus mainly on greatest benefit.
Zero Based Budgets - ANSWER-Based on decision packets, which are ranked by
relative importance to allow for the elimination of entire packages. A budgeting
process in which budgets are prepared with no predetermined allocation or prior year
budget history. Each new budget must be created based on justifiable projected
program needs.
Results-oriented budgeting - ANSWER-Links resource allocation decisions to
performance criteria that include both output and outcomes. Looks at outcomes of
activities rather than individual process steps.
Goal of Standardization Program - ANSWER-Create efficiencies and savings by
reducing the number of different items carried in inventory while maintaining
competition among suppliers.
Standard - ANSWER-Form of a document containing a set of conditions to be
fulfilled or an object for comparison e.g. a particular brand.
Standardization - ANSWER-Adoption of a single product or group of products to be
used by different entities or all parts of one entity.
, Simplification Program - ANSWER-Screening the entity's inventory in order to
determine which items should be consolidated, updated, or no longer maintained in
inventory.
JOC - ANSWER-Job Order Contracting: based on competitively bid indefinate
delivery indefinate quantity contract between an entity and a construction contractor.
Stable Market - ANSWER-Off the shelf items are produced representing a
reasonable competative marketplace.
Unstable Market - ANSWER-Short-run fluctuations are common.
Risk Mitigation Strategies - ANSWER-Terms and Conditions, Boilerplate, Bid Bond,
Fidelity Bond, Payment Bond, Performance/Completion Bond.
Sourcing Analyses - ANSWER-Make, lease, or buy?
Make or Buy Analysis - ANSWER-Ensure all costs are considered, evaluate only
costs that differ between providers, ensure costs evaluated are for the same level of
service and quality.
4 Step Approach to Make or Buy Analysis - ANSWER-Define the outputs to be
analyzed, determine costs that will be saved if requirement is outsourced, compute
the costs of contracting from the private sector, compare the cost difference and
make a final decision.
Common Procurement Delivery Outcomes - ANSWER-Right source, services, place,
price, materials, quantity, time (SS/PP/MQT)
Benchmarking - ANSWER-Measuring a process, service, or good against the
characteristics of the recognized leaders in the given area of review. (Procurement
identifies world class entities with which to compare its practices, policies, and
performance outcomes).
Procurement Profile - ANSWER-Adds decision making intelligence to a spend
analysis through Spend Analysis (range of goods and services available), Market
Analysis (the markets that provide them), Supply Positioning (risks in the market that
could affect the entity's operations).
Supply Positioning - ANSWER-Analyzing the complexity of the supply marketplace
and its impact on entity service delivery.
Two major forces impacting government procurement - ANSWER-1) difficulty of
securing a supply of goods and services 2) the amount expended for each good and
service consumed by the entity.
Buying Plan - Includes 4 major parts - ANSWER-Demand Analysis, Market Analysis,
Supplier Analysis, Value Analysis.
PLANNING & ANALYSIS EXAM
QUESTIONS AND ANSWERS
Inter-sector effeciency - ANSWER-Determines whether or not the cost of a
government activity yields more benefits to society than it if remained in private
sector.
Inter-program efficiency - ANSWER-Allocates resources to program that produces
greatest net benefit. e.g. give more money to the police for the youth or give more
money to the youth program itself.
Intra-program efficiency - ANSWER-Determines if resources should be combined to
maximize the benefits of any given expenditure increement.
Line Item Budgets - ANSWER-Fixed budgets with money appropriated for a
particular period, usually one year.
Disadvantages of Line Item Budgets - ANSWER-Lack of focus on purchasing goals,
no criteria for evaluation of goods/services, trade offs among services impossible to
determine, encourages "use it or lose it" mindset.
Performance Budgets - ANSWER-Focuses on improving management of service
delivery, while yielding lowest unit cost. Focus mainly on lowest cost.
Program Budgets - ANSWER-More elaborate, more long range/multi-year plans,
greatest benefit for the cost. Focus mainly on greatest benefit.
Zero Based Budgets - ANSWER-Based on decision packets, which are ranked by
relative importance to allow for the elimination of entire packages. A budgeting
process in which budgets are prepared with no predetermined allocation or prior year
budget history. Each new budget must be created based on justifiable projected
program needs.
Results-oriented budgeting - ANSWER-Links resource allocation decisions to
performance criteria that include both output and outcomes. Looks at outcomes of
activities rather than individual process steps.
Goal of Standardization Program - ANSWER-Create efficiencies and savings by
reducing the number of different items carried in inventory while maintaining
competition among suppliers.
Standard - ANSWER-Form of a document containing a set of conditions to be
fulfilled or an object for comparison e.g. a particular brand.
Standardization - ANSWER-Adoption of a single product or group of products to be
used by different entities or all parts of one entity.
, Simplification Program - ANSWER-Screening the entity's inventory in order to
determine which items should be consolidated, updated, or no longer maintained in
inventory.
JOC - ANSWER-Job Order Contracting: based on competitively bid indefinate
delivery indefinate quantity contract between an entity and a construction contractor.
Stable Market - ANSWER-Off the shelf items are produced representing a
reasonable competative marketplace.
Unstable Market - ANSWER-Short-run fluctuations are common.
Risk Mitigation Strategies - ANSWER-Terms and Conditions, Boilerplate, Bid Bond,
Fidelity Bond, Payment Bond, Performance/Completion Bond.
Sourcing Analyses - ANSWER-Make, lease, or buy?
Make or Buy Analysis - ANSWER-Ensure all costs are considered, evaluate only
costs that differ between providers, ensure costs evaluated are for the same level of
service and quality.
4 Step Approach to Make or Buy Analysis - ANSWER-Define the outputs to be
analyzed, determine costs that will be saved if requirement is outsourced, compute
the costs of contracting from the private sector, compare the cost difference and
make a final decision.
Common Procurement Delivery Outcomes - ANSWER-Right source, services, place,
price, materials, quantity, time (SS/PP/MQT)
Benchmarking - ANSWER-Measuring a process, service, or good against the
characteristics of the recognized leaders in the given area of review. (Procurement
identifies world class entities with which to compare its practices, policies, and
performance outcomes).
Procurement Profile - ANSWER-Adds decision making intelligence to a spend
analysis through Spend Analysis (range of goods and services available), Market
Analysis (the markets that provide them), Supply Positioning (risks in the market that
could affect the entity's operations).
Supply Positioning - ANSWER-Analyzing the complexity of the supply marketplace
and its impact on entity service delivery.
Two major forces impacting government procurement - ANSWER-1) difficulty of
securing a supply of goods and services 2) the amount expended for each good and
service consumed by the entity.
Buying Plan - Includes 4 major parts - ANSWER-Demand Analysis, Market Analysis,
Supplier Analysis, Value Analysis.
