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

Competitive sealed bidding requires multiple vendors to submit formal bids, ensuring the organization receives the best price and value.

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 B's TCO of $39,000 ($32,000 + $7,000) is lower than Vehicle A's TCO of $40,000 ($28,000 + $12,000).

Question 3

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

Accepted Answer

Accumulates capital for scheduled vehicle replacements

Answer

A replacement reserve fund systematically accumulates money over a vehicle's service life so capital is available when replacement is needed.

Question 4

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

Accepted Answer

Leverage pre-negotiated contracts from another public agency

Answer

Cooperative purchasing lets agencies 'piggyback' on contracts already competitively bid by another entity, saving time while maintaining procurement compliance.

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

Comparing cumulative maintenance costs to current resale value identifies the economic tipping point where replacement becomes more cost-effective than continued operation.

CAFM - Certified Automotive Fleet Manager Practice Test

CAFM - Certified Automotive Fleet Manager Practice Test

CAFM Asset Management and Acquisition 2