Public Procurement & Contracting Flashcards

Which ethical situation represents a 'conflict of interest' in public procurement?

Answer: An evaluator scoring a bid submitted by a company where their spouse is employed

A conflict of interest exists when a procurement official's personal relationships or financial interests could improperly influence an official government decision.

A 'requirements contract' in government procurement guarantees the contractor:

Answer: That the agency will purchase all of its requirements for specified goods from that contractor

A requirements contract commits the agency to order all of its actual needs for specified items exclusively from the contractor, but the quantity is variable and demand-driven.

What is the main purpose of requiring vendors to submit certified cost or pricing data under the Truth in Negotiations Act (TINA)?

Answer: To ensure the government negotiates contracts based on accurate and complete cost information

TINA requires certified cost or pricing data when adequate price competition is absent, preventing contractors from hiding inflated costs during negotiations.

In public procurement, 'scope creep' refers to:

Answer: Unauthorized expansion of contract work beyond the original scope without a formal change order

Scope creep occurs when additional work is performed or directed outside the original contract scope without proper authorization, risking legal exposure and budget overruns.

Which document establishes the government's estimated cost for a project before bids are received, used to evaluate whether bids are reasonable?

Answer: Independent Government Cost Estimate (IGCE)

An IGCE is prepared by the agency before solicitation and serves as the baseline for evaluating bid reasonableness and ensuring adequate budget is available.

A public agency awards a contract and then allows the contractor to begin work before all required signatures and approvals are obtained. This is known as:

Answer: Unauthorized commitment

An unauthorized commitment occurs when an official without proper authority obligates the government contractually, creating legal and financial liability without proper authorization.

Which evaluation factor is prohibited from being used in competitive source selection for government contracts?

Answer: Political affiliation or contributions of the vendor

Using a vendor's political affiliations or campaign contributions as an evaluation factor violates procurement integrity laws and equal protection principles.