CPPB exam prep
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1. What does the procurement policy of an entity reflects?: -The entity's legal system
-The goals and values of the entity
-Policies and practices federal-level entities use to acquire goods and services; this may not apply to state or local entities
2. What should the overall purpose of a procurement policy manual be?: -Establish
the legal authority of the procurement function within the entity.
-Simplify, clarify, and reflect the laws governing procurement
-Enable uniform procurement policies throughout the entity
-Build public confidence in public procurement
-Ensure the fair and equitable treatment of everyone who deals with the procurement system
-Provide for increased efficiency, economy, and flexibility in public procurement activities and maximize to the fullest
extent the purchasing power of the entity
-Foster effective broad-based competition from all segments of the supplier community
-Safeguard the integrity of the procurement system and protect against corruption, waste, fraud and abuse
-Ensure appropriate public access to contracting information
-Foster equal employment opportunities that are in line with legal requirements, in the policies and practices of
suppliers and subcontractors wishing to do business with the entity
3. What should policy and procedure manuals be?: They must be well organized and should
contain a clear definition of the purpose of each manual and its intended use.
4. What must be done to ensure proper organizational impact with a policy and
procedure manual?: The Chief Executive Officer of the entity should endorse each manual and the manuals
should be produced in a manner that facilitates revision as changes will surely happen through new legislation and
increased efficiencies in processes.
5. What are two examples of policies that represent entity objectives?: -a
set-aside/goal that allows an established percentage of the business conducted with an entity to be excluded from
the general competitive pool and purchased from a specialized class of business
-a policy that encourages and promotes a recycling program which includes procuring recycled goods
6. What must Procurement professionals involved in the establishment of policy
manuals be?: -be responsive and adaptive to their environments
-act in the best interest of the entity
-be well-informed about the information associated with regulations
-provide the support to perform functions within established procurement policies and procedures
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7. How are procedure manuals written?: They are written at a finer level of detail that sets out
processes, forms and steps.
8. Who primarily uses procedure manuals?: They are primarily used by the end user and procure-
ment staff, the procedures manual provides guidelines and steps for preparing purchasing requisitions, developing
specifications, receiving and inspection, and reporting and documenting supplier performance.
9. What do procedure manuals detail?: They detail the business processes of Procurement and
describe the entity, duties of staff, signing authorities, procedures to be followed, and forms and filing systems to be
used.
10. What is a supplier manual?: A supplier manual provides formal and extensive information for suppliers
seeking to do business with the entity.
11. What should a supplier manual include?: -general information about the entity
-key contacts and telephone numbers
-how the solicitation process is conducted
-how to receive an opportunity to participate in entity solicitations
-a description of the need to be both a responsive and responsible supplier
-how are are to be submitted, public openings of offers, and the policy regarding late submissions
12. What are the characteristics of a supplier manual?: -well organized, clear and easy to
understand
-clear definition of the purpose and a consistent approach to decision making
-framework for training
-flexible
-endorsed by the entity's Chief Executive Officer
-supplier outreach information
-transparent
-facilitate revision
13. Is Governmental power inherent?: Yes, they are inherent powers that are granted by a constitution,
charter or act.
14. Does a government official have inherent power?: No, for purposes of public procurement,
there must be a specific authorization from officials in the executive branch of government to enter into contracts.
Without that authority, the officials may not do so. The existence of such authority is the foundation of any public
procurement system.
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15. Who passes laws and/or ordinances to generally define the scope of author-
ity and identifies who may exercise that authority?: Legislative bodies.
16. What are the most effective procurement statutes and ordinances?: Those that
establish the general parameters of an official's contracting or procurement authority and authorize that official to
promulgate rules, regulations or policies to implement it.
17. Is Government procurement restricted to activities that are authorized by
law?: Yes, the authority of the central procurement department is limited by what has been included in the enabling
legislation.
18. How is the private sector restricted in procurement?: They may do whatever the law does
not prohibit.
19. What does enabling legislation include?: -constitutions
-statutes
-ordinances and charters
-rules and regulations
-policy
-procurement procedures
20. What are the three primary sources of procurement laws in any entity?: -Statu-
tory Laws
-Administrative Laws
-Common Law
21. What are Statutory Laws?: These include constitutions, statutes, ordinances and charters. Statutory
Laws are based on statutes or laws passed by governments. State or provincial statutes provide state/provincial-directed
legislative law. Ordinances and charters provide for local and municipal governments.
22. What are Administrative Laws?: These are written rules and regulations and entity policy (developed
and promulgated by administrative and regulatory governmental agencies). Administrative Law, provided by the
applicable regulatory entity, has equal force and effect as legislative law as long as it does not supersede the context
of legislative law.
23. What is Common Law?: These are based on customs and traditions and codified through the legal
system. Common Law is based on custom and usage or confirmed by court decisions, i.e., a collection of court decisions.
Access to published judicial decisions is available through volumes called "reporters" in major law libraries.
24. What social and economic problems have policy makers enacted because of
the magnitude of state and local government spending which require contrac-
, CPPB exam prep
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tors to do what?: -maintain fair employee practices
-provide safe and healthy working conditions
-pay fair wages
-refrain from polluting the air and waters
-give preference to contractors from the same state/province or locality
-award to small or women owned businesses
-promote the rehabilitation of prisoners and the disabled
25. What other laws are applicable to public procurement?: -Criminal Law
-Tort Law
-Budget/Finance Laws
26. Define Criminal Law: Imposes punishment such as imprisonment or fines for an act deemed to be
criminal
27. Define tort law: Permits parties to sue each other for damage to a person or property.
28. Define Budget/Finance Laws: These laws prohibit an entity from spending funds beyond those that
the legislative body appropriates.
29. What is authority?: The right to perform certain acts or prescribe rules governing the conduct of others.
30. What is Law of Agency?: The law of agency states that an agent is someone who acts on behalf of a
principal. A product of common law that focuses not only on the creation of agent relationships but also the liability for
losses suffered by others who deal with agents.
31. What are the two ways an agency relationship by created?: -by agreement between
principal and agent or
-by law
32. What is a principal?: A principal is one who employs an agent. A person who authorized another to act
for him/her.
33. What is an agent?: An agent is a person authorized by a superior, i.e., principal, to act for him or her.
Individuals who act on behalf of an entity, such as a corporation, partnership, or any level of government as that entity
conducts business. In public procurement, this designation is usually incorporated into statute and ordinance.
34. What is express authority?: Express authority is the authority that is explicitly given in direct language
rather than inferred from conduct. It can be in writing or oral. Express authority can be very specific; for example, "the
chief procurement officer is authorized to enter into a contract for less than $25,000." Express authority may also be
generalized; for example, "the chief procurement officer has the authority to enter into all contracts according to the
procurement needs of his/her government entity."
Study online at https://quizlet.com/_hhnrhe
1. What does the procurement policy of an entity reflects?: -The entity's legal system
-The goals and values of the entity
-Policies and practices federal-level entities use to acquire goods and services; this may not apply to state or local entities
2. What should the overall purpose of a procurement policy manual be?: -Establish
the legal authority of the procurement function within the entity.
-Simplify, clarify, and reflect the laws governing procurement
-Enable uniform procurement policies throughout the entity
-Build public confidence in public procurement
-Ensure the fair and equitable treatment of everyone who deals with the procurement system
-Provide for increased efficiency, economy, and flexibility in public procurement activities and maximize to the fullest
extent the purchasing power of the entity
-Foster effective broad-based competition from all segments of the supplier community
-Safeguard the integrity of the procurement system and protect against corruption, waste, fraud and abuse
-Ensure appropriate public access to contracting information
-Foster equal employment opportunities that are in line with legal requirements, in the policies and practices of
suppliers and subcontractors wishing to do business with the entity
3. What should policy and procedure manuals be?: They must be well organized and should
contain a clear definition of the purpose of each manual and its intended use.
4. What must be done to ensure proper organizational impact with a policy and
procedure manual?: The Chief Executive Officer of the entity should endorse each manual and the manuals
should be produced in a manner that facilitates revision as changes will surely happen through new legislation and
increased efficiencies in processes.
5. What are two examples of policies that represent entity objectives?: -a
set-aside/goal that allows an established percentage of the business conducted with an entity to be excluded from
the general competitive pool and purchased from a specialized class of business
-a policy that encourages and promotes a recycling program which includes procuring recycled goods
6. What must Procurement professionals involved in the establishment of policy
manuals be?: -be responsive and adaptive to their environments
-act in the best interest of the entity
-be well-informed about the information associated with regulations
-provide the support to perform functions within established procurement policies and procedures
, CPPB exam prep
Study online at https://quizlet.com/_hhnrhe
7. How are procedure manuals written?: They are written at a finer level of detail that sets out
processes, forms and steps.
8. Who primarily uses procedure manuals?: They are primarily used by the end user and procure-
ment staff, the procedures manual provides guidelines and steps for preparing purchasing requisitions, developing
specifications, receiving and inspection, and reporting and documenting supplier performance.
9. What do procedure manuals detail?: They detail the business processes of Procurement and
describe the entity, duties of staff, signing authorities, procedures to be followed, and forms and filing systems to be
used.
10. What is a supplier manual?: A supplier manual provides formal and extensive information for suppliers
seeking to do business with the entity.
11. What should a supplier manual include?: -general information about the entity
-key contacts and telephone numbers
-how the solicitation process is conducted
-how to receive an opportunity to participate in entity solicitations
-a description of the need to be both a responsive and responsible supplier
-how are are to be submitted, public openings of offers, and the policy regarding late submissions
12. What are the characteristics of a supplier manual?: -well organized, clear and easy to
understand
-clear definition of the purpose and a consistent approach to decision making
-framework for training
-flexible
-endorsed by the entity's Chief Executive Officer
-supplier outreach information
-transparent
-facilitate revision
13. Is Governmental power inherent?: Yes, they are inherent powers that are granted by a constitution,
charter or act.
14. Does a government official have inherent power?: No, for purposes of public procurement,
there must be a specific authorization from officials in the executive branch of government to enter into contracts.
Without that authority, the officials may not do so. The existence of such authority is the foundation of any public
procurement system.
, CPPB exam prep
Study online at https://quizlet.com/_hhnrhe
15. Who passes laws and/or ordinances to generally define the scope of author-
ity and identifies who may exercise that authority?: Legislative bodies.
16. What are the most effective procurement statutes and ordinances?: Those that
establish the general parameters of an official's contracting or procurement authority and authorize that official to
promulgate rules, regulations or policies to implement it.
17. Is Government procurement restricted to activities that are authorized by
law?: Yes, the authority of the central procurement department is limited by what has been included in the enabling
legislation.
18. How is the private sector restricted in procurement?: They may do whatever the law does
not prohibit.
19. What does enabling legislation include?: -constitutions
-statutes
-ordinances and charters
-rules and regulations
-policy
-procurement procedures
20. What are the three primary sources of procurement laws in any entity?: -Statu-
tory Laws
-Administrative Laws
-Common Law
21. What are Statutory Laws?: These include constitutions, statutes, ordinances and charters. Statutory
Laws are based on statutes or laws passed by governments. State or provincial statutes provide state/provincial-directed
legislative law. Ordinances and charters provide for local and municipal governments.
22. What are Administrative Laws?: These are written rules and regulations and entity policy (developed
and promulgated by administrative and regulatory governmental agencies). Administrative Law, provided by the
applicable regulatory entity, has equal force and effect as legislative law as long as it does not supersede the context
of legislative law.
23. What is Common Law?: These are based on customs and traditions and codified through the legal
system. Common Law is based on custom and usage or confirmed by court decisions, i.e., a collection of court decisions.
Access to published judicial decisions is available through volumes called "reporters" in major law libraries.
24. What social and economic problems have policy makers enacted because of
the magnitude of state and local government spending which require contrac-
, CPPB exam prep
Study online at https://quizlet.com/_hhnrhe
tors to do what?: -maintain fair employee practices
-provide safe and healthy working conditions
-pay fair wages
-refrain from polluting the air and waters
-give preference to contractors from the same state/province or locality
-award to small or women owned businesses
-promote the rehabilitation of prisoners and the disabled
25. What other laws are applicable to public procurement?: -Criminal Law
-Tort Law
-Budget/Finance Laws
26. Define Criminal Law: Imposes punishment such as imprisonment or fines for an act deemed to be
criminal
27. Define tort law: Permits parties to sue each other for damage to a person or property.
28. Define Budget/Finance Laws: These laws prohibit an entity from spending funds beyond those that
the legislative body appropriates.
29. What is authority?: The right to perform certain acts or prescribe rules governing the conduct of others.
30. What is Law of Agency?: The law of agency states that an agent is someone who acts on behalf of a
principal. A product of common law that focuses not only on the creation of agent relationships but also the liability for
losses suffered by others who deal with agents.
31. What are the two ways an agency relationship by created?: -by agreement between
principal and agent or
-by law
32. What is a principal?: A principal is one who employs an agent. A person who authorized another to act
for him/her.
33. What is an agent?: An agent is a person authorized by a superior, i.e., principal, to act for him or her.
Individuals who act on behalf of an entity, such as a corporation, partnership, or any level of government as that entity
conducts business. In public procurement, this designation is usually incorporated into statute and ordinance.
34. What is express authority?: Express authority is the authority that is explicitly given in direct language
rather than inferred from conduct. It can be in writing or oral. Express authority can be very specific; for example, "the
chief procurement officer is authorized to enter into a contract for less than $25,000." Express authority may also be
generalized; for example, "the chief procurement officer has the authority to enter into all contracts according to the
procurement needs of his/her government entity."
