CGFO Procurement 4 — Questions and Answers
Question 1: When can a government entity use sole source procurement without competition?
- When the procurement officer prefers a specific vendor
- When only one source can provide the required goods or services and the need is justified and documented (Correct answer)
- Whenever the purchase is under $50,000
- When the department head approves the vendor selection
Correct answer: When only one source can provide the required goods or services and the need is justified and documented
Sole source procurement is allowed when only one vendor can meet the requirement, but it must be fully justified and documented in writing.
Question 2: What is a 'responsible' bidder in government procurement?
- A bidder who submits the lowest price
- A bidder who has submitted bids on government contracts before
- A bidder who has the financial resources, technical capability, and integrity to perform the contract (Correct answer)
- A bidder who is headquartered in the state where the contract will be performed
Correct answer: A bidder who has the financial resources, technical capability, and integrity to perform the contract
A responsible bidder is one who has demonstrated the financial capacity, technical ability, equipment, integrity, and past performance record necessary to fulfill contract requirements.
Question 3: What is a 'responsive' bid in government procurement?
- A bid submitted before the deadline with all required documentation that conforms to the terms of the solicitation (Correct answer)
- A bid that offers the lowest price
- A bid from a vendor who has previously contracted with the government
- A bid that includes value-added services beyond the solicitation requirements
Correct answer: A bid submitted before the deadline with all required documentation that conforms to the terms of the solicitation
A responsive bid is one that conforms in all material respects to the terms and conditions of the solicitation, including price, delivery, and specifications.
Question 4: Which procurement document is typically used to gather market information and vendor capabilities before issuing a formal solicitation?
- Invitation for Bids (IFB)
- Request for Information (RFI) (Correct answer)
- Purchase Order (PO)
- Notice of Award (NOA)
Correct answer: Request for Information (RFI)
A Request for Information is used in market research to gather information from potential vendors about their capabilities, approaches, and pricing without creating any obligation to procure.
Question 5: Under the Procurement Integrity Act, a former federal official is prohibited from receiving compensation from a contractor for how long after personally making an award decision?
- 6 months
- 1 year (Correct answer)
- 2 years
- 5 years
Correct answer: 1 year
The Procurement Integrity Act bars officials who personally made or influenced a contract award decision from receiving compensation from the awardee for one year after the award.
Question 6: Which of the following best describes a 'cooperative purchasing agreement' in state and local government procurement?
- An agreement where multiple departments share a single vendor relationship without competition
- A legally established arrangement where multiple government entities jointly conduct competitive procurement to leverage volume pricing (Correct answer)
- An informal arrangement between purchasing officers to share vendor contacts
- A state law allowing governments to purchase from private cooperative buying clubs
Correct answer: A legally established arrangement where multiple government entities jointly conduct competitive procurement to leverage volume pricing
Cooperative purchasing agreements involve multiple government entities pooling their purchasing power through a formal competitive procurement, allowing members to use the resulting contract.
Question 7: A vendor submits a bid that is 40% below all other bids. What should the procurement officer do?
- Award the contract immediately since it represents the lowest cost to the government
- Reject the bid as non-responsive
- Investigate whether the bid is realistic and request documentation of how the vendor can perform at that price (Correct answer)
- Request that all other vendors lower their bids to match
Correct answer: Investigate whether the bid is realistic and request documentation of how the vendor can perform at that price
An abnormally low bid may indicate a mistake, unrealistic pricing, or potential performance failure; the procurement officer should investigate and may request supporting documentation before award.
CGFO Procurement 4
When can a government entity use sole source procurement without competition?