CPPB QUESTION OF THE DAY EXAM
WITH COMPLETE ASNWERS
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 - ANSWER-C. Termination for Convenience
There are six types of risk associated with any solicitation or project. Name any three
of them and what they mean. Extra credit for all six. - ANSWER-• Proposal Risk:
describing the item of service
purchased through specifications and legal
document(s)
• Surety/Liability Risk: protecting the financial and
legal interests of the agency
• Schedule Risk: ensuring timely delivery
• Contractual Risk: establishing change/amendment
procedures, dispute resolution, and breach
procedures
• Performance Risk: defining acceptance
• Price Risk: defining payment terms
Regarding local preference policies - choose either side in the debate on their value
and list at least three points to support your argument. - ANSWER-Maintains or
creates local jobs so income is generated for local residents
Reinvests tax revenues locally
Encourages local business expansion and retention
May not get highest quality
Increased cost to taxpayers
Reduced incentive for suppliers to provide the best value
One of the greatest benefits of using procurement cards is:
A. Improved accountability to management.
B. Considerable reduction in the time needed to identify errors.
C. Reducing the cost of doing business, while preserving purchasing controls.
D. Freeing employees from time-consuming creative tasks. - ANSWER-C. Reducing
the cost of doing business, while preserving purchasing controls.
Communication between buyers and vendors:
,A. Is best done at the vendors work site.
B. Is exclusively accomplished by face to face meetings.
C. Is greatly enhanced by computerized communication applications.
D. Is compromised by email and electronic forms. - ANSWER-C. Is greatly enhanced
by computerized communication applications.
Bid responses that fail to meet the essential elements of the ITB, do not conform to
the specifications or have been submitted by a debarred vendor are considered:
A. Non-responsible
B. Non-negotiable
C. Non-responsive
D. Non-acceptable - ANSWER-C. Non-responsive
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 - ANSWER-B. The award
decision is based on qualitative variables.
The Statute of Frauds generally mandates that six particular promises or agreements
be evidenced in writing. Name any one of the three that particularly applies to public
procurement. Extra credit for all three. - ANSWER-1. Contracts for sale of goods
$500+ under the
UCC
2. Contracts for real estate of land interests
3. Contracts more than a year long
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. - ANSWER-B. A neutral
third party.
One of your elected officials is on his horse again, railing against perceived agency
inefficiencies. "Why can't you people operate more like a business?," he says. Agree
or disagree with the commissioner and give me three things to support your
argument. - ANSWER-Although I would love to have the agility and flexibility of a
business, I have to disagree.
1. Private sector purchasing is motivated by profit. Public sector purchasing is
motivated by public service; delivering desired services while maintaining public
trust.
, 2. Risk is tolerated more in private sector purchasing - generally the higher the risk,
the higher the profits. As the focus of public sector purchasing is on public service
and protecting public trust, risks in order to achieve cost reduction are usually not
tolerated.
3. Public organizations' funds come from tax revenues which have to be collected
and disbursed, and are often earmarked for specific projects. Private organizations
get revenue from sales and investments, and they typically have much more
flexibility to move funds around in their budgets.
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. -
ANSWER-1. Market survey
2. If only one rep/distributor is known, contact
manufacturer to verify
3. If required item has to be identical to an item
already in use for compatibility reasons, verify
the required item is only available from one
source
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 - ANSWER-A. Accommodate source
selection through solicitation invitations.
The courts will always interpret ambiguous contract terms:
A. To favor the party who wrote the contract.
B. To carry out the intentions of both parties to the contract.
C. To favor the party who points out the ambiguity.
D. To carry out the wishes of third parties. - ANSWER-B. To carry out the intentions
of both parties to the contract.
Name five things that are commonly found on a purchase requisition. - ANSWER-
Supplier
Buyer
Purchasing Agent signature
Item # & Description
Quantity, price
Well written specifications, proper language and legal terms are all things that we
add to our solicitations and contracts in order to protect the agency from this type of
risk.
A. Proposal
B. Price
WITH COMPLETE ASNWERS
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 - ANSWER-C. Termination for Convenience
There are six types of risk associated with any solicitation or project. Name any three
of them and what they mean. Extra credit for all six. - ANSWER-• Proposal Risk:
describing the item of service
purchased through specifications and legal
document(s)
• Surety/Liability Risk: protecting the financial and
legal interests of the agency
• Schedule Risk: ensuring timely delivery
• Contractual Risk: establishing change/amendment
procedures, dispute resolution, and breach
procedures
• Performance Risk: defining acceptance
• Price Risk: defining payment terms
Regarding local preference policies - choose either side in the debate on their value
and list at least three points to support your argument. - ANSWER-Maintains or
creates local jobs so income is generated for local residents
Reinvests tax revenues locally
Encourages local business expansion and retention
May not get highest quality
Increased cost to taxpayers
Reduced incentive for suppliers to provide the best value
One of the greatest benefits of using procurement cards is:
A. Improved accountability to management.
B. Considerable reduction in the time needed to identify errors.
C. Reducing the cost of doing business, while preserving purchasing controls.
D. Freeing employees from time-consuming creative tasks. - ANSWER-C. Reducing
the cost of doing business, while preserving purchasing controls.
Communication between buyers and vendors:
,A. Is best done at the vendors work site.
B. Is exclusively accomplished by face to face meetings.
C. Is greatly enhanced by computerized communication applications.
D. Is compromised by email and electronic forms. - ANSWER-C. Is greatly enhanced
by computerized communication applications.
Bid responses that fail to meet the essential elements of the ITB, do not conform to
the specifications or have been submitted by a debarred vendor are considered:
A. Non-responsible
B. Non-negotiable
C. Non-responsive
D. Non-acceptable - ANSWER-C. Non-responsive
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 - ANSWER-B. The award
decision is based on qualitative variables.
The Statute of Frauds generally mandates that six particular promises or agreements
be evidenced in writing. Name any one of the three that particularly applies to public
procurement. Extra credit for all three. - ANSWER-1. Contracts for sale of goods
$500+ under the
UCC
2. Contracts for real estate of land interests
3. Contracts more than a year long
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. - ANSWER-B. A neutral
third party.
One of your elected officials is on his horse again, railing against perceived agency
inefficiencies. "Why can't you people operate more like a business?," he says. Agree
or disagree with the commissioner and give me three things to support your
argument. - ANSWER-Although I would love to have the agility and flexibility of a
business, I have to disagree.
1. Private sector purchasing is motivated by profit. Public sector purchasing is
motivated by public service; delivering desired services while maintaining public
trust.
, 2. Risk is tolerated more in private sector purchasing - generally the higher the risk,
the higher the profits. As the focus of public sector purchasing is on public service
and protecting public trust, risks in order to achieve cost reduction are usually not
tolerated.
3. Public organizations' funds come from tax revenues which have to be collected
and disbursed, and are often earmarked for specific projects. Private organizations
get revenue from sales and investments, and they typically have much more
flexibility to move funds around in their budgets.
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. -
ANSWER-1. Market survey
2. If only one rep/distributor is known, contact
manufacturer to verify
3. If required item has to be identical to an item
already in use for compatibility reasons, verify
the required item is only available from one
source
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 - ANSWER-A. Accommodate source
selection through solicitation invitations.
The courts will always interpret ambiguous contract terms:
A. To favor the party who wrote the contract.
B. To carry out the intentions of both parties to the contract.
C. To favor the party who points out the ambiguity.
D. To carry out the wishes of third parties. - ANSWER-B. To carry out the intentions
of both parties to the contract.
Name five things that are commonly found on a purchase requisition. - ANSWER-
Supplier
Buyer
Purchasing Agent signature
Item # & Description
Quantity, price
Well written specifications, proper language and legal terms are all things that we
add to our solicitations and contracts in order to protect the agency from this type of
risk.
A. Proposal
B. Price
