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Procurement & Contract Administration Flashcards

7 cards from real CMO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Procurement & Contract Administration flashcards as text

  1. A Qualified Products List (QPL) is PRIMARILY used to:

    Answer: Pre-approve products that have met testing requirements before solicitation

    A QPL identifies products pre-tested and approved as meeting specifications, streamlining procurement by eliminating per-purchase testing.

  2. Which document establishes the legal authority, duties, and limitations of a procurement officer in a municipality?

    Answer: The purchasing ordinance or procurement code

    A municipal purchasing ordinance or procurement code defines the procurement officer's legal authority, thresholds, and responsibilities.

  3. When a contract requires the contractor to obtain a performance bond, the bond PRIMARILY protects the municipality against:

    Answer: The contractor's failure to complete the work as specified

    A performance bond guarantees that a surety will complete the project or compensate the owner if the contractor defaults on performance obligations.

  4. The term 'piggybacking' in public procurement refers to:

    Answer: Using another government entity's competitively awarded contract

    Piggybacking allows a municipality to purchase under another public agency's competitively solicited contract, satisfying competition requirements without conducting its own bid.

  5. A 'materially unbalanced bid' is MOST problematic because it:

    Answer: Front-loads high prices on early items to accelerate cash flow at the owner's expense

    A materially unbalanced bid artificially inflates early-work unit prices and deflates later items, imposing excess costs on the municipality regardless of final quantities.

  6. Which of the following BEST describes 'reverse auction' procurement?

    Answer: Vendors compete by lowering their prices in real time until the lowest price wins

    In a reverse auction, sellers compete by reducing their prices in real time, driving the purchase price down; it is the opposite of a traditional auction.

  7. A municipality wishes to award a multi-year service contract. The MAIN budget risk it must address is:

    Answer: The lack of annual appropriation authority beyond the current fiscal year

    Most municipal governments cannot legally obligate funds beyond the current fiscal year without specific legislative authority, making multi-year contracts contingent on future appropriations.