CAFM Asset Management and Acquisition 2

Question 1

Which procurement method requires fleet managers to solicit competitive bids from multiple vendors before making a vehicle purchase?

Accepted Answer

Competitive sealed bidding

Answer

Sole-source procurement

Answer

Cooperative purchasing

Answer

Emergency acquisition

Question 2

A fleet manager is evaluating two vehicles: Vehicle A costs $28,000 with projected 5-year maintenance of $12,000, and Vehicle B costs $32,000 with projected 5-year maintenance of $7,000. Which has the lower total cost of ownership?

Accepted Answer

Vehicle B at $39,000

Answer

Vehicle A at $40,000

Answer

Vehicle A at $28,000

Answer

Vehicle B at $32,000

Question 3

What does a 'fleet replacement reserve fund' primarily accomplish?

Accepted Answer

Accumulates capital for scheduled vehicle replacements

Answer

Covers unexpected accident repairs

Answer

Funds driver training programs

Answer

Pays for fuel during budget shortfalls

Question 4

When using cooperative purchasing agreements, a fleet manager is able to:

Accepted Answer

Leverage pre-negotiated contracts from another public agency

Answer

Avoid all competitive bidding requirements

Answer

Purchase vehicles without budget approval

Answer

Bypass manufacturer warranty requirements

Question 5

Which asset data point is MOST critical when determining the optimal replacement cycle for a fleet vehicle?

Accepted Answer

Cumulative maintenance cost versus current market value

Answer

Vehicle color and trim level

Answer

The original purchasing agent's name

Answer

Manufacturer's suggested retail price at time of sale

Question 6

A 'red-line' policy in fleet asset management refers to:

Accepted Answer

A threshold at which a vehicle is automatically flagged for disposal

Answer

Painting fleet vehicles a specific color for identification

Answer

Maximum speed limits posted on fleet vehicles

Answer

The boundary of the fleet manager's geographic territory

Question 7

Which financing method allows a fleet to use vehicles without owning them, with maintenance often bundled into monthly payments?

Accepted Answer

Full-service lease

Answer

Capital purchase with debt financing

Answer

Spot purchase

Answer

Installment sale agreement