CPPB Prep Course - Practice Test Exam Questions with Verified Answers 2024 Update., Exams of Business Economics

Download CPPB Prep Course - Practice Test Exam Questions with Verified Answers 2024 Update. and more Exams Business Economics in PDF only on Docsity! CPPB Prep Course - Practice Test Exam Questions with Verified Answers 2024 Update. FIXED-PRICE WITH ESCALATION/DE-ESCALATION - Correct Answer The purchasing officer of the governmental agency has expressed serious concerns about the number of repetitive requisitions, solicitations and POs that are being processed to purchase gasoline for the organization. Every time a new order is placed, another requisition is created and the prices paid by each dept. are not consistent; sometimes more and sometimes less depending on competition and timing. The buyer advises that the solution would be to use what type of contract? INSTITUTING A PURCHASING CARD PROGRAM - Correct Answer a Got agency with a centralized purchasing dept. has a threshold for small purchases of $1000 and three quotes are required above that figure. There has been a steady increase in the number of requisitions along with recent complaints from internal customers about it taking too long to buy what they need. Which of the following action is most likely to have the biggest impact on reducing costs and saving time in the long run? ADDRESS W/ ON-SITE SUPVSR/CONTRACTOR - Correct Answer a Got agency has been having problems with a supplier's performance and may terminate their contract with the supplier. Which of the following would be the best first step in addressing the issue with the supplier? LINE ITEM BUDGET - Correct Answer an agency uses a budget in which appropriations are approved for different classes of expenditures. Each class is broken into subclasses against which funding for sacs and commodities can be applied. This budget approach maximizes control & ensures financial accountability. What type of budget is this? B) $268,000 - Correct Answer The procurement dept. is considering the acquisition of 10 high volume multi-function printers at a unit cost of $20,000. The printers have an estimated useful life of 8 yrs. and require the following annual costs per printer: Consumable Supplies $350; Electricity $150; and Maintenance $350. What is the total cost of ownership of the printers? A) $264,000, B) $268,000, C) $256,000, D) $260,000 USE THE "CURE NOTICE" PROCEDURES AND GIVE NOTICE OF THE FAILURES TO THE SUPPLIER - Correct Answer The supplier of a performance based contract that has an initial 3 yr. term w/ two one-yr. extensions upon satisfactory performance, has failed to perform in accordance w/ specified delivery schedules. They also do not respond to quality issues in a timely manner. The supplier has not been given formal notice of the problems. The internal user does not want the contract extended for the remaining two one-yr. periods, and wants to terminate the contract immediately for cause. What should the contract administrator do? D) FORMING - Correct Answer The members of the team are getting to know one another and learning about the knowledge and skills that each brings to the team. At what phase of development is this team? A) Performing, B) Norming, C) Storming, D) Forming B) ISSUE A CHANGE ORDER UNDER THE EXISTING CONTRACT - Correct Answer A supplier has completed the work identified in the specifications, but the got agency has determined that addle work is required to complete the project. What should the buyer do to get this work done? A) Inspect and reject the work, B) Issue a change order under the existing contract, C) Let the contractor perform the additional work and then determine a fair & reasonable price for that work, D) Withhold final acceptance of the project until the supplier completes the additional work. D) COST AVOIDANCE - Correct Answer A procurement dept. is diligent to ensure that a solicitation does not have to be cancelled and re-completed. This activity achieves what organizational goal? A) Value Analysis, B) Cost Reduction, C) Efficiency, D) Cost Avoidance C) PROVIDES A COMMON REPOSITORY FOR DATA - Correct Answer Which of the following is a benefit of an automated procurement system? A) Reduces communication entering the system from outside of the organization, B) Prevents incorrect information being shared among stakeholders, C) Provides a common repository for data, D) Ensures purchasing controls all information and decisions. B) COOPERATIVE CONTRACT - Correct Answer The agency would like to "piggyback" its purchases with other agencies that are participating in cooperative purchasing. When using a "piggyback" method, what would the arrangement be called? A) Cooperative Solicitation, B) Cooperative Contract, C) Cooperative Organization, D) Piggyback RFP B) RECORDER - Correct Answer On the team Susan writes down key points on a flip chart pad. What team role is Susan playing? A) Leader, B) Recorder, C) Facilitator, D) Time Keeper B) CAPITAL FUND - Correct Answer A got agency processed a purchase requisition for the purchase of 250 street lights with new LED light fixtures. Which fund should a purchasing agent check to confirm that the money was available for this purchase? A) Fiduciary Fund, B) Capital Fund, C) Operating Fund, D) Debt Service Fund C) IMPLIED WARRANTY - Correct Answer A building contract to do certain work, contains within itself an unwritten customer expectation that the work shall be done in a professional manner is representative of which of the following: A) Full Warranty, B) Express Warranty, C) Implied Warranty, D) Implied Authority B) DETERMINE IF THE ITEM IS AVAILABLE IN SURPLUS STOCK - Correct Answer Upon receipt of a Purchase Requisition for a small buy commodity, what is the first step the buyer should take? A) Issue a solicitation, as appropriate to the dollar threshold D) ALLOWS ORDERING ITEMS, OR SERVICES ON AN "AS NEEDED" BASIS - Correct Answer What is the purpose of a blanket contract? A) Allows the provider to be reimbursed for costs plus be paid a fee independent of the costs, B) Provides for specified items, or services to be delivered w/I a specific time frame, C) Provides for fixed hourly rates for labor and parts at the stated contractors cost, D) Allows ordering items, or services on an "as needed" basis D) LATENT DEFECT - Correct Answer an agency purchased specialized software. Four weeks after the software was accepted & installed, a defect in the software became apparent. The procurement dept. can file a claim for what type of loss or damage? A) Known loss, B) Known damage, C) Concealed loss, D) Latent defect D) PROVIDES THE ENTITY WITH INFORMATION TO USE WHEN DEVELOPING THE SOLICITATION - Correct Answer Governmental agencies sometimes hold supplier interviews during the planning process of a solicitation. What is a benefit of conducting such interviews? A) Allows procurement to disqualify some suppliers from the solicitation process, B) Allows the suppliers to pre-view the solicitation, C) Allows the two parties to negotiate pricing in advance, D) Provides the entity with information to use when developing the solicitation B) A CERTIFIED ENGINEER - Correct Answer A got agency is negotiating the procurement of a major contract. Which of the following persons should be included on the team to ensure that a newly mfg. product meets the requirements of the item to be acquired? A) The procurement official, B) A certified engineer, C) The in-house attorney, D) The contractor A) FIDELITY BOND - Correct Answer A buyer is tendering security guard sacs. The buyer wants to protect the agency from security guards stealing expensive equipment while on shift. Which is the most appropriate item to require of the successful bidder in order to mitigate the risk? A) Fidelity bond, B) Performance Bond, C) Professional Liability Insurance, D) General Liability Insurance D) KNOWING WHAT THE OTHER SIDE REALLY WANTS & NEEDS - Correct Answer When preparing for a negotiation session, what knowledge will give the governmental negotiator the most power? A) Knowing when to walk away from the table, B) Having the most knowledge of cost analysis, C) Identifying a secondary supplier in case the negotiations are not successful, D) Knowing what the other side really wants and needs B) THIRD PARTY CERTIFICATION - Correct Answer The governmental agency has a contract with a has materials mgmt. company to remove asbestos from 83 school buildings. What is the best method for the agency to employ to ensure compliance with the contract specifications? A) Random Sampling, B) 3rd Party certification, C) Spot Inspection, D) 50% inspection by your agency's project mgr. C) WIN/WIN - Correct Answer What is the goal of a principled negotiation? A) Avoid Litigation, B) Generate many options, C) Win/Win, D) Use objective criteria B) REMIND THE REQUESTER OF THE CODE RESTRICTIONS ON SPLITTING ORDERS - Correct Answer A got agency has a non-competition threshold that says any purchase below $5,000 does not require competition. Over a 3 mo. period a requesting user has asked on 3 separate occasions to directly purchase w/o competition, products needed by the agency. On each occasion the value of the purchase was approximately $4,500. What should the buyer do? A) Point out the repetitive nature of the orders B) Remind the requester of the code restrictions on splitting orders, C) Extend the purchase order, D) Ask a peer to place the order C) AT THE TIME SPECIFIED IN THE FOB TERMS - Correct Answer in a typical product acquisition, when does the risk of loss pass to the purchaser? A) At the supplier's loading dock when loaded onto the freight carrier, B) At the purchaser's loading dock when off-loaded and formally received by the purchasing agent, C) At the time specified in the FOB terms, D) At the time of purchase C) MONITORING THE DESIRED OUTCOMES DEFINED IN THE STATEMENT OF WORK - Correct Answer The got agency has entered into a performance-based contract with a local cleaning service to clean the offices at the county got center. What should the buyer focus on to ensure supplier compliance? A) Inspecting the company's adherence to process steps defined in the Performance of Work Statement, B) Identifying potential occurrences of agency opportunism by the company, C) Monitoring the desired outcomes defined in the Statement of Work, D) Overcoming information asymmetry D) MARKET ANALYSIS - Correct Answer A buyer is charged with purchasing diesel fuel for the transit system. What type of study should be conducted to determine how best to make this purchase? A) Value analysis, B) Supplier selection, C) Demand analysis, D) Market analysis C) TO EVALUATE THE SUPPLIER'S ON-LINE ORDERING & WAREHOUSING CAPABILITY - Correct Answer A got agency wants to implement a JIT system for paper, toner, and cartridges. The buyer is reviewing a proposal from a supplier. What would be the primary purpose of a site visit? A) To determine if the supplier has sufficient staff, B) To assess the supplier's Quality Control processes, C) To evaluate the supplier's on-line ordering & warehousing capability, D) To evaluate the supplier's LIFO inventory to support the planned JIT program C) TERMINATION FOR CONVENIENCE CLAUSE - Correct Answer If a jurisdiction wants to allow discontinuation of a contract prior to its completion b/c of the jurisdiction's own needs & not the poor performance of the selected contractor, the RFP document will need to include what type of clause? A) Insurance Remits clause, B) Agreement Termination clause, C) Termination for convenience clause, D) Assignments clause B) VALUE ENGINEERING - Correct Answer A general contractor (GC) raced Notice to Proceed from a got agency for a building construction project. After analyzing the plans & specs, the GC proposed a substitute material that would save the agency 20% of material cost w/ better performance. What type of process is this? A) Value analysis, B) Value engineering, C) Process improvement, D) Benchmark C) DESCRIBES THE STD OF QLTY & PERFORMANCE W/ UNIQUE QUALIFER - Correct Answer Which of the following statements best describes a brand name specification? A) Establishes the QPL characteristics, in significant details, that an item must possess, B) Sets forth the capabilities & performance characteristics, C) Describes the STD of quality & performance w/ a unique qualifier, D) Describes all physical & functional characteristics of a commercial standard spec A) FOLLOW-UP - Correct Answer A buyer placed an order for the purchase of circuit breakers which will be installed in a new substation. The supplier was unsure when the goods would be available for delivery. What would be the most appropriate action for the buyer to take to ensure the goods arrive on time? A) Follow-up, B) Expedite, C) Change FOB point, D) Accept a substation offered by the supplier A) EXPRESS THE ORGANIZATION'S PURPOSE FOR EXISTENCE - Correct Answer an organization's mission statement should: A) Express the organization's purpose for existence, B) Identify roles and responsibilities of key stakeholders, C) Articulate the goals & objectives of the organization, D) Communicate particular organizational strategies for success A) REQUEST FOR EQUITABLE ADJUSTMENT - Correct Answer Changes to a contract creates addle work & expenses for the contractor which allows the contractor to request addle payment. To allow this, contract must contain provision for a price adjustment. What is this called? A) Request for Equitable adjustment, B) Constructive change, C) Escalation clauses, D) Allowable costs C) PURCHASING MGRS INDEX - Correct Answer A buyer consults a well-established indicator that identifies economic trends. What is this indicator? A) Consumer Reports, B) Stock Markets, C) Purchasing Managers Index, D) Gartner Dataquest B) COST ANALYSIS - Correct Answer A buyer is asked to conduct a review & evaluation of a supplier's cost date in order to determine actual costs or estimates of costs to be incurred. This process is known as: A) Cost containment, B) Cost analysis, C) Cost Breakdown, D) Cost Adjustment A) BATNA - Correct Answer as part of the planning process the negotiation team should decide the course of action that it will take if the current negotiations fail and an agreement cannot be reached. What is this called? A) BATNA, B) Lose/Lose, C) Spiraling agreements, D) Walk away point