CGFO Procurement 2

Question 1

Under the Uniform Guidance (2 CFR Part 200), what is the micro-purchase threshold for federal awards?

Accepted Answer

$10,000

Answer

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?

Accepted Answer

Award to the lowest responsible bidder after verifying responsibility

Answer

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?

Accepted Answer

Invitation for Bids (IFB)

Answer

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?

Accepted Answer

Purchasing off another government entity's competitively bid contract

Answer

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?

Accepted Answer

Breaking a $120,000 purchase into three $40,000 purchases to avoid the $100,000 bid threshold

Answer

Bid splitting (or purchase order splitting) involves artificially dividing a purchase to circumvent competitive bidding thresholds, which is prohibited.

(CGFO) Certified Government Finance Officer Practice Test

(CGFO) Certified Government Finance Officer Practice Test

CGFO Procurement 2