WITH SOLUTIONS GRADED A+
◉ INSTITUTING A PURCHASING CARD PROGRAM.
Answer: A Govt agency with a centralized purchasing dept. has a
threshold for small purchases of $1000 and three quotes are
required above that figure. There has been a steady increase in the
number of requisitions along with recent complaints from internal
customers about it taking too long to buy what they need. Which of
the following action is most likely to have the biggest impact on
reducing costs and saving time in the long run?
◉ ADDRESS W/ ON-SITE SUPVSR/CONTRACTOR.
Answer: A Govt agency has been having problems with a supplier's
performance and may terminate their contract with the supplier.
Which of the following would be the best first step in addressing the
issue with the supplier?
◉ LINE ITEM BUDGET.
Answer: An agency uses a budget in which appropriations are
approved for different classes of expenditures. Each class is broken
into subclasses against which funding for svcs and commodities can
,be applied. This budget approach maximizes control & ensures
financial accountability. What type of budget is this?
◉ B) $268,000.
Answer: The procurement dept. is considering the acquisition of 10
high volume multi-function printers at a unit cost of $20,000. The
printers have an estimated useful life of 8 yrs and require the
following annual costs per printer: 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) $260,000
◉ USE THE "CURE NOTICE" PROCEDURES AND GIVE NOTICE OF
THE FAILURES TO THE SUPPLIER.
Answer: The supplier of a performance based contract that has a
initial 3 yr term w/ two one-yr extensions upon 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 supplier has not been given formal notice of the
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 should the contract
administrator do?
◉ D) FORMING.
, Answer: The members of the team are getting to know one another
and learning about the knowledge and skills that each brings to the
team. At what phase of development is this team? A) Performing, B)
Norming, C) Storming, D) Forming
◉ B) ISSUE A CHANGE ORDER UNDER THE EXISTING CONTRACT.
Answer: A supplier has completed the work identified in the
specifications, but the govt agency has determined that addtl work is
required to complete the project. What should the buyer do to get
this work done? A) Inspect and reject the work, B) Issue a change
order under the existing contract, C) Let the contractor perform the
additional work and then determine a fair & reasonable price for
that work, D) Withhold final acceptance of the project until the
supplier completes the additional work.
◉ D) COST AVOIDANCE.
Answer: A procurement dept is diligent to ensure that a solicitation
does not have to be cancelled and re-completed. This activity
achieves what organizational goal? A) Value Analysis, B) Cost
Reduction, C) Efficiency, D) Cost Avoidance
◉ C) PROVIDES A COMMON REPOSITORY FOR DATA.
Answer: Which of the following is a benefit of an automated
procurement system? A) Reduces communication entering the
system from outside of the organization, B) Prevents incorrect
information being shared among stakeholders, C) Provides a