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1. Which phase of the contract lifecycle focuses on identifying
business needs and developing specifications?
A. Contract administration
B. Contract monitoring
C. Planning and needs assessment
D. Contract closeout
Correct Answer: C
Rationale: Planning and needs assessment establish requirements,
scope, and objectives before solicitation begins.
2. In Texas public contracting, which document formally requests
vendor proposals based on evaluation criteria?
A. Invitation for Bid (IFB)
B. Purchase Order
C. Request for Proposals (RFP)
D. Contract Amendment
Correct Answer: C
Rationale: An RFP allows evaluation of technical merit and value, not
just price.
, 3. Which procurement method emphasizes lowest responsive and
responsible bidder?
A. RFP
B. IFB
C. Sole source
D. Emergency procurement
Correct Answer: B
Rationale: IFBs are awarded primarily on price once minimum
requirements are met.
4. What is the primary purpose of a contract risk assessment?
A. Increase contract costs
B. Delay procurement
C. Identify and mitigate potential risks
D. Eliminate vendor competition
Correct Answer: C
Rationale: Risk assessments help agencies anticipate issues and
implement controls.
5. Which clause protects the state from liability caused by contractor
negligence?
A. Force majeure
B. Indemnification
C. Payment terms
D. Assignment clause
Correct Answer: B
Rationale: Indemnification shifts certain risks and liabilities to the
contractor.
6. What document defines performance expectations and
deliverables?
, A. Purchase voucher
B. Statement of Work (SOW)
C. Invoice
D. Change order
Correct Answer: B
Rationale: The SOW specifies tasks, deliverables, timelines, and
standards.
7. Which action is appropriate when a contractor fails to meet
performance standards?
A. Ignore the issue
B. Extend the contract automatically
C. Initiate corrective action
D. Increase payment
Correct Answer: C
Rationale: Corrective actions address deficiencies and protect the
state’s interests.
8. What is the role of a contract manager after contract execution?
A. Award the contract
B. Negotiate pricing
C. Monitor compliance and performance
D. Approve vendor marketing
Correct Answer: C
Rationale: Post-award oversight ensures contract terms are fulfilled.
9. Which contract type places the greatest cost risk on the
contractor?
A. Cost-reimbursement
B. Time and materials