2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ Best Value.
Answer: Means awarding contracts based on several factors, including:-A
vendor's ability to successfully complete the contract on time, at the quality
level specified, at the offered price-Technical quality of the supplies or
services offered, and -Vendor's past performance on similar contracts
◍ The principal objectives of public purchasing are to:.
Answer: -Obtain the materials, services, and facilities required by public
organizations -When and where the materials, services, and facilities are
needed-At the best price reasonably available-Through open, fair
competition-At a reasonable cost
◍ Price=.
Answer: is the amount actually paid to a vendor for materials, services or
facilities
◍ Cost=.
Answer: to obtain materials, services or facilities is inevitably higher than
the price paid to the vendor. That cost included the cost of preparing
specifications, advertising for bids or proposals, dealing with vendor
inquires, evaluating vendor's bids or proposals, dealing with any bid
protests, contracting and contract administration.
◍ Best Value.
Answer: Awarding contracts based on several factors
◍ Competitive Marketplace:.
Answer: Pressures vendors to offer competitive quality at competitive
, prices.
◍ Factors for Awarding Contracts.
Answer: Vendor's ability to successfully complete the contract on time and
at the quality level specified, at the offered priceTechnical quality of the
supplies or services offeredVendor's Past performance on similar contracts.
◍ Open, fair competition:.
Answer: is very important purchasing objective to both the public and
private sectors.
◍ Affirmative Market Program.
Answer: reserves contracts or portions of contracts for groups of vendors
that historically have been disadvantaged through discrimination
◍ Principal Objective of Public Purchasing.
Answer: Obtain the materials, services, and facilities are required by public
organizations,When and where the materials, services and facilities are
neededAt the best price reasonably available,Through open, fair
competition, At a reasonable cost
◍ Key Control Activities related to Procurement.
Answer: Establishing Authority for Approval of Transactions ,Establishing
Responsibility for executing Transactions,Segregation of Duties Control of
access to Assets and RecordsMonitoring
◍ prior appropriation.
Answer: Municipal finance law and State law prohibits cities and towns
from expending funds on particular items beyond the specific appropriation
without prior authorization before entering into a contract
◍ Four elements of a contract.
Answer: mutual assent,Offer and acceptance Consideration (amount of
money paid, but can be another form of payment)Contract terms
◍ Prohibit Payment.
Answer: You cannot pay a vendor unless there is a signed contract per law,
, even if they have provided supplies and services
◍ Establishing Authority for Approval of Transactions.
Answer: The organization should clearly establish and document which
positions within the organization have the authority to approve specific
transactions.
◍ Collective Purchasing Agreement.
Answer: One of the participating jurisdictions will assume the lead role in
advertising and awarding the contract and act as the procurement officer on
behalf of the group. Only those that participated from the beginning can
make purchases under the contract.
◍ Establishing Responsibility for Executing Transactions.
Answer: The organization should clearly establish and document which
positions within the organization are responsible for carrying out specific
transactions and should provide a detailed description of the procedures for
carrying out and documenting each type of transaction.
◍ Prohibitive payment.
Answer: MA law prohibits payment to a vendor under an invalid contract,
even if the vendor has provided supplies and services.
◍ Segregation of Duties.
Answer: Segregation of duties means that no employee should be in a
position to carry out an improper transaction and then conceal it. In other
words, a single individual should not have the ability to authorize a
transaction, carry out the transaction, record the transaction, maintain
custody of the assets resulting from the transaction, and control the books
and records relating to the transaction.-Ex. in reading
◍ Collective Purchasing Agreement.
Answer: One of the participating jurisdictions will assume the lead role in
advertising and awarding the contract and act as the procurement officer on
behalf of the group. Only the jurisdictions participating in the original
procurement may make purchases under the contract