CGFO Procurement 2 — Questions and Answers
Question 1: Under the Uniform Guidance (2 CFR Part 200), what is the micro-purchase threshold for federal awards?
- $3,500
- $10,000 (Correct answer)
- $50,000
- $250,000
Correct answer: $10,000
The Uniform Guidance sets the micro-purchase threshold at $10,000, below which competition requirements are generally waived.
Question 2: A government entity receives bids from three vendors. The lowest bid comes from a vendor with a history of poor performance. What is the best course of action?
- Award to the lowest bidder regardless of past performance
- Reject all bids and re-solicit
- Award to the lowest responsible bidder after verifying responsibility (Correct answer)
- Award to the second-lowest bidder automatically
Correct answer: Award to the lowest responsible bidder after verifying responsibility
Government procurement requires awarding to the lowest responsible bidder, meaning the entity must verify the vendor's capacity, integrity, and past performance.
Question 3: Which procurement method is most appropriate when a government agency knows exactly what it needs and price is the primary selection criterion?
- Request for Proposal (RFP)
- Sole source procurement
- Invitation for Bids (IFB) (Correct answer)
- Request for Qualifications (RFQ)
Correct answer: Invitation for Bids (IFB)
An Invitation for Bids is used when specifications are clearly defined and award is made solely on price to the lowest responsive, responsible bidder.
Question 4: What does 'piggybacking' mean in government procurement?
- Adding items to an existing purchase order without authorization
- Purchasing off another government entity's competitively bid contract (Correct answer)
- Splitting a purchase to stay under bid thresholds
- Awarding a contract without competitive bidding
Correct answer: Purchasing off another government entity's competitively bid contract
Piggybacking allows a government entity to purchase goods or services under a contract competitively awarded by another government entity.
Question 5: Which of the following is an example of bid splitting, a prohibited practice?
- Awarding two contracts to different vendors for different services
- Breaking a $120,000 purchase into three $40,000 purchases to avoid the $100,000 bid threshold (Correct answer)
- Issuing separate solicitations for distinct and unrelated projects
- Dividing a large multi-year project into annual contract phases
Correct answer: Breaking a $120,000 purchase into three $40,000 purchases to avoid the $100,000 bid threshold
Bid splitting (or purchase order splitting) involves artificially dividing a purchase to circumvent competitive bidding thresholds, which is prohibited.
Question 6: A Request for Qualifications (RFQ) is primarily used to:
- Obtain firm price quotes for commodities
- Pre-qualify vendors based on experience and capability before requesting proposals (Correct answer)
- Negotiate sole-source contracts
- Solicit bids for construction under sealed-bid rules
Correct answer: Pre-qualify vendors based on experience and capability before requesting proposals
An RFQ is used to identify and pre-qualify vendors based on qualifications and experience, often as a first step before issuing an RFP.
Question 7: Under the Brooks Act, which factor must be the primary basis for selecting architects and engineers for federal projects?
- Lowest price
- Past performance ratings
- Professional qualifications (Correct answer)
- Local preference
Correct answer: Professional qualifications
The Brooks Act mandates that A&E firms be selected based on professional qualifications and competence, with price negotiations occurring only after the most qualified firm is identified.
CGFO Procurement 2
Under the Uniform Guidance (2 CFR Part 200), what is the micro-purchase threshold for federal awards?