CMGT 3500 FINAL EXAM 2
QUESTIONS AND ANSWERS
What are the three project award methods? - ANSWER-competitive bidding,
negotiation, direct assignment
Where is competitive bidding used? - ANSWER-federal or state and local projects,
publicly financed
Where is negotiation/direct assignment used? - ANSWER-private government
What are the advantages of competitive bidding? - ANSWER-fair to all contractors,
allows competition and innovation to reduce price, allows new contractors a chance
to enter the market
What is negotiated bidding? - ANSWER-selective pool of experienced and
trustworthy contractors, looks at factors other than cost. Has a shorter period of time
for bid evaluations
What is bid rigging? - ANSWER-form of fraud which can turn into collusion and jail
time, illegal, tied to price fixing and market allocation
What are the elements of the bid? - ANSWER-advertisement for bid (used on public
projects), invitation to bid (private projects), instructions for bidders (AIA)
What does IFB stand for? - ANSWER-Instructions to/for bidders
What are instructions for bidders used for? - ANSWER-Used to distribute uniformed
information to all bidders, ensures uniformity and responsiveness, lets you know if
bid bond is required through a bank or surety company, also shows the withdrawal
process.
What is competitive bidding? - ANSWER-oldest and most commonly used for
contractor selection. Lowest responsive responsible bidder wins
What is a responsible bid? - ANSWER-meets all terms and conditions of bid and
instructions to bidder. Complies with contract documents with no deviation.
What are bid changes? - ANSWER-owner approved reasons for change will result in
return of bid bond. Failure to follow owner instructions will result in bond revocation.
When can you withdraw a bid? - ANSWER-mistake must be considerable and of
sufficient magnitude, not of negligence or inexperience. Owner does not suffer from
withdrawal of bid
QUESTIONS AND ANSWERS
What are the three project award methods? - ANSWER-competitive bidding,
negotiation, direct assignment
Where is competitive bidding used? - ANSWER-federal or state and local projects,
publicly financed
Where is negotiation/direct assignment used? - ANSWER-private government
What are the advantages of competitive bidding? - ANSWER-fair to all contractors,
allows competition and innovation to reduce price, allows new contractors a chance
to enter the market
What is negotiated bidding? - ANSWER-selective pool of experienced and
trustworthy contractors, looks at factors other than cost. Has a shorter period of time
for bid evaluations
What is bid rigging? - ANSWER-form of fraud which can turn into collusion and jail
time, illegal, tied to price fixing and market allocation
What are the elements of the bid? - ANSWER-advertisement for bid (used on public
projects), invitation to bid (private projects), instructions for bidders (AIA)
What does IFB stand for? - ANSWER-Instructions to/for bidders
What are instructions for bidders used for? - ANSWER-Used to distribute uniformed
information to all bidders, ensures uniformity and responsiveness, lets you know if
bid bond is required through a bank or surety company, also shows the withdrawal
process.
What is competitive bidding? - ANSWER-oldest and most commonly used for
contractor selection. Lowest responsive responsible bidder wins
What is a responsible bid? - ANSWER-meets all terms and conditions of bid and
instructions to bidder. Complies with contract documents with no deviation.
What are bid changes? - ANSWER-owner approved reasons for change will result in
return of bid bond. Failure to follow owner instructions will result in bond revocation.
When can you withdraw a bid? - ANSWER-mistake must be considerable and of
sufficient magnitude, not of negligence or inexperience. Owner does not suffer from
withdrawal of bid
