ANSWERS
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The purchasing officer of the governmental agency has
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expressed serious concerns about the number of |\ |\ |\ |\ |\ |\ |\
repetitive requisitions, solicitations and POs that are
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being processed to purchase gasoline for the
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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
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depending on competition and timing. The buyer advises |\ |\ |\ |\ |\ |\ |\ |\
that the solution would be to use what type of contract? -
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CORRECT ANSWERS ✔✔FIXED-PRICE WITH |\ |\ |\
ESCALATION/DE-ESCALATION
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A Govt agency with a centralized purchasing dept. has a
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threshold for small purchases of $1000 and three quotes
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are required above that figure. There has been a steady
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increase in the number of requisitions along with recent
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complaints from internal customers about it taking too |\ |\ |\ |\ |\ |\ |\ |\
long to buy what they need. Which of the following action
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is most likely to have the biggest impact on reducing
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costs and saving time in the long run? - CORRECT
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ANSWERS ✔✔INSTITUTING A PURCHASING CARD |\ |\ |\ |\ |\
PROGRAM
,A Govt agency has been having problems with a
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supplier's performance and may terminate their contract |\ |\ |\ |\ |\ |\ |\
with the supplier. Which of the following would be the
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best first step in addressing the issue with the supplier? -
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CORRECT ANSWERS ✔✔ADDRESS W/ ON-SITE |\ |\ |\ |\
SUPVSR/CONTRACTOR
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An agency uses a budget in which appropriations are
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approved for different classes of expenditures. Each class |\ |\ |\ |\ |\ |\ |\ |\
is broken into subclasses against which funding for svcs
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and commodities can be applied. This budget approach
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maximizes control & ensures financial accountability. |\ |\ |\ |\ |\ |\
What type of budget is this? - CORRECT ANSWERS
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✔✔LINE ITEM BUDGET |\ |\
The procurement dept. is considering the acquisition of
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10 high volume multi-function printers at a unit cost of
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$20,000. The printers have an estimated useful life of 8
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yrs and require the following annual costs per printer:
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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)
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$260,000 - CORRECT ANSWERS ✔✔B) $268,000 |\ |\ |\ |\ |\
The supplier of a performance based contract that has a
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initial 3 yr term w/ two one-yr extensions upon
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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
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supplier has not been given formal notice of the
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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
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should the contract administrator do? - CORRECT
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ANSWERS ✔✔USE THE "CURE NOTICE" PROCEDURES AND |\ |\ |\ |\ |\ |\
GIVE NOTICE OF THE FAILURES TO THE SUPPLIER
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The members of the team are getting to know one
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another and learning about the knowledge and skills that
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each brings to the team. At what phase of development is
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this team? A) Performing, B) Norming, C) Storming, D)
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Forming - CORRECT ANSWERS ✔✔D) FORMING |\ |\ |\ |\ |\
A supplier has completed the work identified in the
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specifications, but the govt agency has determined that |\ |\ |\ |\ |\ |\ |\ |\
addtl work is required to complete the project. What
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should the buyer do to get this work done? A) Inspect and
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reject the work, B) Issue a change order under the
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existing contract, C) Let the contractor perform the
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additional work and then determine a fair & reasonable |\ |\ |\ |\ |\ |\ |\ |\ |\
price for that work, D) Withhold final acceptance of the
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project until the supplier completes the additional work. -
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CORRECT ANSWERS ✔✔B) ISSUE A CHANGE ORDER |\ |\ |\ |\ |\ |\ |\
UNDER THE EXISTING CONTRACT |\ |\ |\