CCA Construction Procurement and Subcontracting 1 — Questions and Answers
Question 1: Which procurement method requires a general contractor to publicly advertise a project and award the contract to the lowest responsive and responsible bidder?
- Negotiated procurement
- Competitive sealed bidding (Correct answer)
- Design-build selection
- Construction management at-risk
Correct answer: Competitive sealed bidding
Competitive sealed bidding requires public advertisement, sealed submissions, and award to the lowest qualified bidder, maximizing price competition.
Question 2: A 'responsible bidder' in construction procurement is one that:
- Submits the lowest bid
- Demonstrates the financial, technical, and managerial capability to perform the contract (Correct answer)
- Has worked with the owner before
- Is incorporated in the same state as the project
Correct answer: Demonstrates the financial, technical, and managerial capability to perform the contract
Responsibility refers to a bidder's demonstrated capacity—financial, technical, and managerial—to successfully complete the contract.
Question 3: Which document establishes the minimum qualifications subcontractors must meet before being considered for a construction project?
- Request for Proposal (RFP)
- Prequalification questionnaire (Correct answer)
- Notice to Proceed
- Substantial Completion Certificate
Correct answer: Prequalification questionnaire
A prequalification questionnaire collects financial statements, safety records, references, and licenses to screen subcontractors before they are permitted to bid.
Question 4: A construction auditor reviewing subcontract awards should verify that subcontractor selection was based on:
- Personal relationships with the project manager
- Documented evaluation criteria applied consistently to all bidders (Correct answer)
- The subcontractor's geographic proximity
- The general contractor's past preference
Correct answer: Documented evaluation criteria applied consistently to all bidders
Documented, consistently applied evaluation criteria provide objective evidence that subcontractor selection was fair and free from favoritism.
Question 5: Under the Miller Act, prime contractors on federal construction projects exceeding $150,000 must obtain:
- A performance bond and a payment bond (Correct answer)
- An environmental surety bond
- A bid bond only
- A maintenance bond
Correct answer: A performance bond and a payment bond
The Miller Act requires both a performance bond (guaranteeing project completion) and a payment bond (ensuring subcontractors and suppliers are paid) on federal projects over $150,000.
Question 6: Which procurement document is used to solicit prices for well-defined construction work where the scope is fully specified?
- Request for Information (RFI)
- Invitation for Bids (IFB) (Correct answer)
- Request for Qualifications (RFQ)
- Letter of Intent
Correct answer: Invitation for Bids (IFB)
An IFB (also called an Invitation to Bid or ITB) is used when scope is fully defined and the selection criterion is price, inviting sealed competitive bids.
CCA Construction Procurement and Subcontracting 1
Which procurement method requires a general contractor to publicly advertise a project and award the contract to the lowest responsive and responsible bidder?