CMO Procurement & Contract Administration 2

Question 1

A municipality receives only one responsive bid on a formal solicitation. The procurement officer should MOST likely:

Accepted Answer

Cancel and re-bid with revised specifications or broader outreach

Answer

A single responsive bid suggests the market was not adequately reached or specifications were too restrictive, so re-bidding with revisions is the appropriate first step.

Question 2

Which contract type places the GREATEST financial risk on the contractor?

Accepted Answer

Firm-fixed-price contract

Answer

A firm-fixed-price contract holds the contractor to a set price regardless of actual costs, so cost overruns are entirely the contractor's risk.

Question 3

Under the Uniform Guidance (2 CFR Part 200), the micro-purchase threshold for non-federal entities is generally:

Accepted Answer

$10,000

Answer

The federal micro-purchase threshold under 2 CFR 200.320 is $10,000, below which competition requirements are minimal.

Question 4

A change order that increases a contract's total value by 25% is BEST described as a potential:

Accepted Answer

Cardinal change

Answer

A cardinal change is a modification so substantial that it fundamentally alters the contract's scope, potentially voiding competitive procurement requirements.

Question 5

Which evaluation method is MOST appropriate when the quality of the solution matters as much as price?

Accepted Answer

Best value (qualitative factors plus price)

Answer

Best value procurement weighs both technical/qualitative factors and price, allowing municipalities to select the proposal offering the greatest overall benefit.

(CMO) Certified Municipal Officer Practice Test

(CMO) Certified Municipal Officer Practice Test

CMO Procurement & Contract Administration 2