Public Contrac ng Overview (MCPPO 1) Ques ons and
answers| Updated RATED A+ 2026
Best Value
Means awarding contracts based on several factors, including:
-A vendor's ability to successfully complete the contract on me, 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 objec ves of public purchasing are to:
-Obtain the materials, services, and facili es required by public organiza ons
-When and where the materials, services, and facili es are needed
-At the best price reasonably available
-Through open, fair compe on
-At a reasonable cost
Price=
is the amount actually paid to a vendor for materials, services or facili es
Cost=
to obtain materials, services or facili es is inevitably higher than the price paid to the vendor.
That cost included the cost of preparing specifica ons, adver sing for bids or proposals, dealing
with vendor inquires, evalua ng vendor's bids or proposals, dealing with any bid protests,
contrac ng and contract administra on.
Compe ve Marketplace:
Pressures vendors to offer compe ve quality at compe ve prices.
Open, fair compe on:
is very important purchasing objec ve to both the public and private sectors.
Affirma ve Market Program
reserves contracts or por ons of contracts for groups of vendors that historically have been
disadvantaged through discrimina on
, Establishing Authority for Approval of Transac ons
The organiza on should clearly establish and document which posi ons within the organiza on
have the authority to approve specific transac ons.
Establishing Responsibility for Execu ng Transac ons
The organiza on should clearly establish and document which posi ons within the organiza on
are responsible for carrying out specific transac ons and should provide a detailed descrip on
of the procedures for carrying out and documen ng each type of transac on.
Segrega on of Du es
Segrega on of du es means that no employee should be in a posi on to carry out an improper
transac on and then conceal it. In other words, a single individual should not have the ability to
authorize a transac on, carry out the transac on, record the transac on, maintain custody of
the assets resul ng from the transac on, and control the books and records rela ng to the
transac on.
-Ex. in reading
Control of Access to Assets and Records
A public organiza on should take reasonable care to maintain physical security over assets. The
term "assets" refers generally to items, equipment and furnishings that are the property of the
public organiza on. Inventories should generally be maintained in locked storage areas
accessible only to designated individuals. The organiza on should establish a sign-out system to
keep track of valuable items, such as tools that are needed temporarily by employees. Items
such as laptop computers can be assigned on a long-term basis to employees who need them,
and a designated individual should be responsible for maintaining records pertaining to these
assignments. The internal control system should ensure that the organiza on can hold
employees are held accountable for valuable equipment that they use in connec on with their
jobs.
Monitoring
A public or private organiza on should monitor its internal control system. To do this, the
organiza on should designate an individual to periodically review the work of each employee
involved in processing transac ons as well as reviewing output reports. Control ac vi es
require an ongoing investment of me and effort.
Some key control ac vi es related to procurement
-Establishing Authority for Approval of Transac ons
-Establishing Responsibility for Execu ng Transac ons
answers| Updated RATED A+ 2026
Best Value
Means awarding contracts based on several factors, including:
-A vendor's ability to successfully complete the contract on me, 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 objec ves of public purchasing are to:
-Obtain the materials, services, and facili es required by public organiza ons
-When and where the materials, services, and facili es are needed
-At the best price reasonably available
-Through open, fair compe on
-At a reasonable cost
Price=
is the amount actually paid to a vendor for materials, services or facili es
Cost=
to obtain materials, services or facili es is inevitably higher than the price paid to the vendor.
That cost included the cost of preparing specifica ons, adver sing for bids or proposals, dealing
with vendor inquires, evalua ng vendor's bids or proposals, dealing with any bid protests,
contrac ng and contract administra on.
Compe ve Marketplace:
Pressures vendors to offer compe ve quality at compe ve prices.
Open, fair compe on:
is very important purchasing objec ve to both the public and private sectors.
Affirma ve Market Program
reserves contracts or por ons of contracts for groups of vendors that historically have been
disadvantaged through discrimina on
, Establishing Authority for Approval of Transac ons
The organiza on should clearly establish and document which posi ons within the organiza on
have the authority to approve specific transac ons.
Establishing Responsibility for Execu ng Transac ons
The organiza on should clearly establish and document which posi ons within the organiza on
are responsible for carrying out specific transac ons and should provide a detailed descrip on
of the procedures for carrying out and documen ng each type of transac on.
Segrega on of Du es
Segrega on of du es means that no employee should be in a posi on to carry out an improper
transac on and then conceal it. In other words, a single individual should not have the ability to
authorize a transac on, carry out the transac on, record the transac on, maintain custody of
the assets resul ng from the transac on, and control the books and records rela ng to the
transac on.
-Ex. in reading
Control of Access to Assets and Records
A public organiza on should take reasonable care to maintain physical security over assets. The
term "assets" refers generally to items, equipment and furnishings that are the property of the
public organiza on. Inventories should generally be maintained in locked storage areas
accessible only to designated individuals. The organiza on should establish a sign-out system to
keep track of valuable items, such as tools that are needed temporarily by employees. Items
such as laptop computers can be assigned on a long-term basis to employees who need them,
and a designated individual should be responsible for maintaining records pertaining to these
assignments. The internal control system should ensure that the organiza on can hold
employees are held accountable for valuable equipment that they use in connec on with their
jobs.
Monitoring
A public or private organiza on should monitor its internal control system. To do this, the
organiza on should designate an individual to periodically review the work of each employee
involved in processing transac ons as well as reviewing output reports. Control ac vi es
require an ongoing investment of me and effort.
Some key control ac vi es related to procurement
-Establishing Authority for Approval of Transac ons
-Establishing Responsibility for Execu ng Transac ons
