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A series of questions and answers related to procurement practices, regulations, and principles. It covers topics such as continuity of operations planning, joint bid purchases, the sherman anti-trust act, bidder obligations, the pareto principle, types of competition, implied warranties, the statute of frauds, internal and external customers, rfp evaluation, administrative law, latent defects, automated procurement systems, contract administration, competency in public contracting, essential purposes of inspection, standardization, contract pricing, document retention schedules, and business ownership. The questions are designed to test understanding and application of key concepts in procurement.
Typology: Exams
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Sierra, |\a |\Procurement |\Director |\is |\developing |\her |\department's |
Continuity |\of |\Operations |\Plan. |\Which |\step |\should |\she |\do |\first |\to |
determine |\her |\departments |\essential |\functions? o |\Call |\a |\similar |\public |\entity |\and |\ask |\for |\a |\copy |\of |\their |\continuity |\of |\operation |\plan o |\Ask |\her |\customers |\what |\functions |\are |\most |\important |\to |\them o |\Document |\then |\list |\all |\procurement |\functions o |\Ask |\other |\entities |\who |\have |\experienced |\a |\disaster |\what |\their |
essential |\functions |\are |- |\CORRECT |\ANSWERS |\✔✔Document |\then |
list |\all |\procurement |\functions True |\or |\false. |\Joint |\bid |\purchases |\and |\piggyback |\purchases |\are |
the |\same |\thing. |\Explain. |- |\CORRECT |\ANSWERS |\✔✔False. |\Joint |\bid |
purchases |\is |\when |\agencies |\purchase |\the |\same |\item |\or |\service |
using |\one |\solicitation |\for |\both |\agencies. |\The |\agency |\is |\a |\part |\of |
the |\solicitation |\and |\contract. |\Piggy |\back |\purchases |\is |\when |\an |
agency |\uses |\a |\contract |\that |\was |\solicited |\by |\another |\agency, |
state, |\or |\cooperative |\bidding |\process. |\The |\agency |\is |\often |\not |
involved |\in |\the |\original |\bidding |\process, |\however, |\does |\have |\an |
addendum |\to |\use |\the |\contract. 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 |\ANSWERS |\✔✔Sherman |\Anti- Trust |\Act What |\is |\the |\bidder's |\obligation |\when |\a |\bid |\that |\was |\accepted |\by |
the |\agency |\contained |\minor |\clerical |\errors? |
|
A. |\The |\bidder |\must |\void |\the |\contract. |
B. |\The |\bidder |\must |\perform |\the |\contract. |
C. |\The |\purchaser |\cannot |\allow |\the |\bidder |\to |\make |\corrections. |
D. |\The |\court |\must |\make |\a |\decision |\on |\this |\matter. |- |\CORRECT |
ANSWERS |\✔✔The |\bidder |\must |\perform |\the |\contract.
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 |\ANSWERS |
✔✔Enabling |\legislation A |\latent |\defect |\is |\one: |
A. |\That |\is |\detected |\at |\the |\time |\of |\purchase. |
B. |\That |\is |\detected |\at |\the |\time |\of |\receipt. |
C. |\That |\is |\detected |\during |\installation. |
D. |\That |\surfaces |\after |\a |\product |\has |\been |\in |\use. |- |\CORRECT |
ANSWERS |\✔✔That |\surfaces |\after |\a |\product |\has |\been |\in |\use. A |\buyer |\is |\also |\the |\System |\Administrator |\for |\the |\automated |
procurement |\system |\in |\his |\agency. |\He |\is |\reviewing |\a |\recent |
printout |\of |\operating |\statistics |\and |\notices |\that |\the |\length |\of |\time |\from |\receipt |\of |\a |\purchase |\requisition |\to |\issuance |\of |\the |
purchase |\order |\has |\increased |\for |\the |\second |\quarter |\in |\a |\row. |
Which |\of |\the |\following |\actions |\should |\he |\take |\prior |\to |\making |\a |
recommendation |\to |\his |\supervisor |\to |\reverse |\this |\trend? |
|
A. |\Conduct |\a |\benchmarking |\study |\to |\determine |\the |\average |
length |\of |\time |\for |\other |\comparable |\agencies |\
B. |\Talk |\to |\Human |\Resources |\about |\the |\possibility |\of |\hiring |\more |
staff |
C. |\Review |\the |\workload-per-buyer |\statistics |\and |\see |\if |\a |
reallocation |\of |\responsibilities |\is |\needed |
D. |\Run |\the |\statistical |\analysis |\three |\more |\times |\to |\see |\if |\it |\was |
just |\an |\error |- |\CORRECT |\ANSWERS |\✔✔Review |\the |\workload-per- buyer |\statistics |\and |\see |\if |\a |\reallocation |\of |\responsibilities |\is |
needed The |\job |\of |\the |\Contract |\Administrator |\is: A. |\Issue |\the |\contract |\and |\support |\the |\efforts |\of |\the |\finance |\officer |\who |\then |\manages |\the |\contract |\through |\to |\completion. B. |\Ensure |\the |\contractor |\submits |\a |\valid |\contract |\for |\signature |\by |\the |\proper |\procurement |\personnel. C. |\Ensure |\the |\terms |\of |\the |\contract |\are |\met |\and |\the |\interests |\of |
the |\agency |\are |\protected. D. |\Be |\the |\legal |\expert |\available |\during |\any |\protest |\or |\negotiation |\during |\the |\contract |\development |\phase. |- |\CORRECT |\ANSWERS |
✔✔Ensure |\the |\terms |\of |\the |\contract |\are |\met |\and |\the |\interests |\of |
the |\agency |\are |\protected. 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. |\Fixed |\price |\with |\escalation |- |\CORRECT |\ANSWERS |\✔✔Fixed |
price |\with |\escalation. We've |\put |\a |\solicitation |\out |\on |\the |\street, |\opened |\it, |\tabbed |\it |
and |\awarded |\the |\contract, |\which |\the |\department |\is |\now |\using |
and |\administering. |\Our |\work |\is |\done |- |\yes |\or |\no? |\Explain |\your |
answer. |- |\CORRECT |\ANSWERS |\✔✔No, |\we |\take |\it |\through |\contract |
closeout. 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 |\ANSWERS |\✔✔Legal |\or |\statutory |
requirements. Business |\in |\which |\majority |\ownership |\belongs |\to |\members |
determined |\to |\be |\historically |\underprivileged |\because |\of |\a |
predetermined |\social |\advantage. |- |\CORRECT |\ANSWERS |
✔✔Disadvantaged |\Business An |\independently |\owned |\firm, |\corporation, |\or |\establishment, |
having |\a |\small |\number |\of |\employees, |\low |\volume |\of |\sales, |\small |
amount |\of |\assets |\and |\limited |\impact |\on |\the |\market. |- |\CORRECT |
ANSWERS |\✔✔Small |\Business:
Congress |\created |\this |\administration, |\whose |\function |\is |\to |"aid, |
counsel, |\assist |\and |\protect, |\insofar |\as |\is |\possible, |\the |\interests |\of |
small |\business |\concerns. |- |\CORRECT |\ANSWERS |\✔✔Small |\Business |\Administration A |\small |\business |\with |\five |\employees |\or |\less. |- |\CORRECT |
ANSWERS |\✔✔Micro-business The |\process |\of |\conveying |\a |\false |\impression |\or |\providing |
misleading |\information |\about |\how |\a |\company's |\products |\are |
more |\environmentally |\sound. |- |\CORRECT |\ANSWERS |
✔✔Greenwashing The |\practice |\of |\creating |\structures |\and |\using |\processes |\that |\are |
environmentally |\responsible |\and |\resource-efficient |\throughout |
the |\life |\cycle |\of |\a |\building. |- |\CORRECT |\ANSWERS |\✔✔Sustainable |
Construction An |\internationally |\recognized |\green |\building |\certification |\system |
and |\is |\one |\of |\the |\most |\popular |\green |\building |\certification |
programs |\used |\worldwide. |- |\CORRECT |\ANSWERS |\✔✔LEED |
(Leadership |\in |\Energy |\and |\Environmental |\Design) Which |\of |\the |\following |\options |\describes |\an |\important |
consideration |\when |\developing |\a |\strategic |\plan? o |\Mission |\statement |\is |\specific |\and |\detailed o |\Each |\element |\is |\aligned |\with |\and |\supports |\the |\other |\elements o |\Goal |\and |\objects |\should |\be |\long |\term
o |\Supporting |\DBEs o |\Sustainability |\in |\the |\supply |\chain o |\Supporting |\local |\economy o |\Worker |\safety |\in |\the |\supply |\chain |- |\CORRECT |\ANSWERS |
✔✔Worker |\safety |\in |\the |\supply |\chain An |\entity |\would |\like |\to |\invite |\more |\participation |\by |\local |
businesses. |\What |\strategy |\may |\the |\Procurement |\Officer |\use |\in |
order |\to |\do |\so? o |\Speaking |\at |\local |\Chamber |\of |\Commerce |\meetings. o |\Adding |\local |\supplier |\preferences. o |\Requiring |\that |\all |\suppliers |\have |\a |\local |\presence |\within |\the |
entity's |\region o |\Requiring |\the |\use |\of |\local |\subcontractors |\for |\every |\contract. |- |
CORRECT |\ANSWERS |\✔✔Speaking |\at |\local |\Chamber |\of |\Commerce |
meetings. Involves |\the |\transformation |\of |\the |\organizational |\mission, |\goals, |
and |\objectives |\into |\measurable |\activities |\to |\be |\used |\to |\plan. |
Examples |\of |\strategic |\procurement |\planning |\include |\the: |\
Meeting |\present |\needs |\without |\negatively |\impacting |\subsequent |
generations' |\ability |\to |\fulfill |\their |\needs. |(Management |\of |\waster; |
carbon |\emissions; |\water |\conservation) |- |\CORRECT |\ANSWERS |
✔✔Sustainability The |\Materials |\Manager |\for |\the |\Utility |\department |\has |\to |\keep |
parts |\and |\materials |\in |\stock |\to |\maintain |\all |\ 42 |\pump |\stations |\as |
well |\as |\the |\entire |\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 |\ANSWERS |\✔✔Cannibalize |\it |
for |\parts 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."
Policy |- |\CORRECT |\ANSWERS |\✔✔A |\governing |\principle |\or |\plan |\that |\establishes |\the |\general |\parameters |\for |\an |\organization |\to |\follow |
in |\carrying |\out |\its |\responsibilities. Procedure |- |\CORRECT |\ANSWERS |\✔✔The |\detailed |\series |\of |\related |\activities |\that |\must |\be |\completed |\and |\the |\sequence |\in |\which |
they |\must |\be |\done, |\to |\accomplish |\a |\given |\task. Common |\Law |- |\CORRECT |\ANSWERS |\✔✔Bodies |\of |\law |\not |\set |
forth |\in |\statues, |\ordinances, |\or |\regulations, |\developed |\through |
court |\decisions. A |\business |\entity |\or |\individual |\who |\has |\the |\integrity |\and |
reliability |\as |\well |\as |\the |\financial |\and |\technical |\capacity |\to |
perform |\the |\requirements |\of |\the |\solicitation |\and |\subsequent |
contract. |- |\CORRECT |\ANSWERS |\✔✔Responsible A |\bid |\or |\proposal |\that |\fully |\conforms |\in |\all |\material |\respects |\to |
the |\Invitation |\for |\Bids(IFB)/Request |\for |\Proposals(RFP) |\and |\all |\of |
its |\requirements, |\including |\all |\form |\and |\substance. |- |\CORRECT |
ANSWERS |\✔✔Responsive The |\specific |\right |\to |\perform |\acts |\and |\make |\decisions |\or |
prescribe |\rules |\governing |\the |\conduct |\of |\others |\as |\given |\to |\an |
agent |\by |\a |\principal. |- |\CORRECT |\ANSWERS |\✔✔Actual |\Authority
That |\authority |\that |\is |\explicitly |\given |\in |\direct |\language, |\rather |
than |\inferred |\from |\conduct. |- |\CORRECT |\ANSWERS |\✔✔Express |
Authority Authority |\that |\is |\not |\defined |\expressly, |\but |\is |\only |\determined |\by |
inferences |\and |\reasonable |\deductions |\about |\actions |\that |\are |
necessary |\to |\perform |\the |\expressly |\authorized |\acts. |\Can |\consider |\the |\conduct |\of |\the |\principal |\regarding |\the |\historical |\actions |\of |
the |\agent. |- |\CORRECT |\ANSWERS |\✔✔Implied |\Authority Occurs |\when |\a |\principal |\allows |\or |\permits |\a |\person |\to |\function |\in |
a |\capacity |\that |\creates |\the |\illusion |\that |\the |\person |\is |\an |
authorized |\agent |\of |\the |\principal. |- |\CORRECT |\ANSWERS |
✔✔Apparent |\Authority An |\organizational |\statement |\that |\clearly |\and |\concisely |\addresses |
the |\future |\nature |\and |\purpose |\of |\the |\entity. |\A |\short |\statement |
that |\tells |\who |\the |\organization |\is |\and |\where |\they |\are |\going. |- |
CORRECT |\ANSWERS |\✔✔Mission |\Statement (Strengths, |\Weaknesses, |\Opportunities, |\and |\Threats) |\analysis |\is |\a |\strategic |\planning |\model |\that |\helps |\organizations |\identify |\where |
they're |\doing |\well |\and |\where |\they |\can |\improve, |\both |\from |\an |
internal |\and |\external |\perspective. |- |\CORRECT |\ANSWERS |\✔✔SWOT |\Analysis Like |\the |\SWOT, |\it |\identifies |\internal |\as |\well |\as |\external |\forces; |
however, |\it |\focuses |\strictly |\on |\factors, |\which |\are |\considered |\to |\be |"positive." |\Identifies |\Aspirations |\and |\Results. |\Focused |\on |\
Strategic |\Procurement |\Planning |- |\CORRECT |\ANSWERS |\✔✔The |
transformation |\of |\the |\entity's |\mission, |\goals |\and |\objectives |\into |
measurable |\activities |\to |\be |\used |\to |\plan, |\budget |\and |\manage |\the |\procurement |\function |\within |\the |\entity. Strategic |\Sourcing |- |\CORRECT |\ANSWERS |\✔✔a |\methodology |\and |
process |\that |\enables |\procurement |\professionals |\to |\analyze |\what |
and |\how |\they |\acquire |\products |\and |\services, |\with |\the |\objectives |
of |\lowering |\costs |\to |\the |\entity |\and |\improving |\supply |\fulfillment |
from |\the |\producer |\level |\to |\the |\end-user |(supply |\chain). |\In |
addition, |\strategic |\sourcing |\can |\help |\Procurement |\improve |
supplier |\performance, |\eliminate |\non-value-add |\activities |\and |
costs, |\reduce |\waste, |\and |\minimize |\risk. A |\state |\professional |\licensing |\board |\is |\considering |\new |\rules |
regulating |\the |\licensed |\profession. |\The |\rules |\will |\impact |\the |
scope |\of |\practice |\of |\that |\profession |\and |\may |\affect |\the |\income |\of |\licensees. |\A |\couple |\of |\members |\of |\the |\licensing |\board |\hold |
positions |\established |\by |\law |\for |\licensees |\in |\this |\profession. |\When |\the |\board |\discusses |\and |\votes |\on |\the |\rules, |\what |\should |\the |
board |\members |\who |\are |\licensees |\do? o |\Do |\nothing |\other |\than |\give |\the |\new |\rules |\considerations |\and |
vote |\their |\conscience. o |\Declare |\their |\conflicts |\of |\interests |\and |\then |\proceed |\with |
discussion |\and |\voting |\on |\the |\new |\rules. o |\Declare |\their |\conflicts |\of |\interests, |\abstain |\from |\voting |\on |\the |
new |\rules |\and |\request |\that |\their |\declaration |\and |\abstention |\be |
noted |\in |\the |\minutes |\of |\the |\meeting.
o |\It |\doesn't |\matter |\what |\they |\do |\because |\the |\majority |\of |\the |
board |\stated |\at |\the |\last |\meeting |\that |\they |\are |\voting |\in |\favor |\of |
the |\new |\rules. |- |\CORRECT |\ANSWERS |\✔✔Declare |\their |\conflicts |\of |
interests, |\abstain |\from |\voting |\on |\the |\new |\rules |\and |\request |\that |
their |\declaration |\and |\abstention |\be |\noted |\in |\the |\minutes |\of |\the |
meeting. Which |\of |\the |\following |\is |\an |\example |\of |\bid |\rigging? o |\A |\bidder's |\showing |\up |\at |\the |\public |\bid |\opening, |\seeing |\its |
competitors, |\and |\deciding |\not |\to |\submit |\a |\bid. o |\A |\bidder's |\agreeing |\with |\a |\competitor |\that |\it |\will |\submit |\a |\high |
bid |\to |\provide |\adequate |\competition. o |\A |\bidder's |\deciding |\to |\bid |\only |\on |\solicitations |\in |\areas |\not |
services |\by |\a |\major |\competitor. o |\A |\manufacturer's |\retail |\outlets |\bidding |\only |\in |\their |
geographical |\areas |\of |\responsibility. |- |\CORRECT |\ANSWERS |\✔✔A |
bidder's |\agreeing |\with |\a |\competitor |\that |\it |\will |\submit |\a |\high |\bid |
to |\provide |\adequate |\competition. A |\public |\entity |\has |\a |\non-competition |\threshold |\that |\says |\any |
purchase |\below |$5,000.00 |\does |\not |\require |\competition. |\Over |\a |
three-month |\period, |\a |\supervisor |\has |\asked |\a |\procurement |
professional |\on |\ 3 |\separate |\occasions |\to |\directly |\purchase |\without |\competition, |\the |\same |\products |\needed |\by |\their |\entity. |\On |\each |
occasion |\the |\value |\of |\the |\purchase |\was |\approximately |$4,500.00. |\What |\should |\the |\procurement |\professional |\do? o |\Point |\out |\the |\repetitive |\nature |\of |\orders. o |\Remind |\the |\supervisor |\of |\the |\code |\restrictions |\on |\fragmenting |
orders. o |\Extend |\the |\purchase |\order.
C. |\Strong |\commitment |\to |\planning D. |\Reliance |\on |\forward |\thinking |- |\CORRECT |\ANSWERS |\✔✔Goals |
were |\not |\stated |\in |\clear |\quantifiable |\term 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 |\ANSWERS |\✔✔Value |\analysis 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 |\ANSWERS |\✔✔The |\award |\decision |\is |\based |\on |
qualitative |\variables The |\process |\of |\establishing |\agreement |\on |\the |\characteristics, |
quality, |\design, |\and |\performance |\of |\the |\products |\and |\services |\to |\
be |\purchased. |\Achieve |\economies |\of |\scale |- |\CORRECT |\ANSWERS |
✔✔Standardization A |\version |\of |\the |"Make |\or |\Buy" |\decision |\in |\which |\an |\organization |
elects |\to |\contract |\for |\an |\item |\of |\service |\that |\was |\previously |
provided |\by |\in-house |\resources. |- |\CORRECT |\ANSWERS |
✔✔Outsourcing The |\divestiture |\of |\both |\management |\and |\assets |\of |\a |\public |
function |\to |\change |\the |\status |\of |\a |\function |\formerly |\performed |\by |\the |\government |\to |\one |\that |\is |\privately |\controlled |\and |\owned |
including |\the |\transfer |\of |\real |\and |\personal |\property |- |\CORRECT |
ANSWERS |\✔✔Privatization A |\procurement |\method |\that |\emphasizes |\value |\over |\price. |\The |
best |\value |\might |\not |\be |\the |\lowest |\cost. |\Generally |\achieved |
through |\the |\Request |\for |\Proposals |(RFP) |\method. |- |\CORRECT |
ANSWERS |\✔✔Best |\Value A |\method |\directed |\at |\all |\of |\the |\functions |\of |\a |\product |\or |\service |
to |\satisfy |\the |\requirements |\at |\the |\lowest |\possible |\cost |\to |\the |
entity. |- |\CORRECT |\ANSWERS |\✔✔Value |\Analysis An |\analysis |\that |\influences |\the |\decision |\to |\either |\provided |\the |
food |\or |\service |\by |\using |\internal |\organization |\resources |\or |\to |
contract |\out |\for |\a |\supplier |\to |\meet |\the |\need. |- |\CORRECT |
ANSWERS |\✔✔Make |\or |\Buy |\Analysis