Practice Test Geeks(CPM) Certified Project Manager Practice Test
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Public Procurement & Contracting Flashcards

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

Read the first 7 Public Procurement & Contracting flashcards as text

  1. Which procurement method is most appropriate when a government agency needs a highly specialized IT system and the technical approach matters as much as price?

    Answer: Request for Proposals (RFP)

    An RFP is used when technical approach, qualifications, and methodology are evaluated alongside price, making it ideal for complex IT procurements.

  2. A public manager discovers a vendor submitted a bid that is 40% below all other bids. What should the manager do first?

    Answer: Request the vendor to verify or explain the unusually low bid

    Procurement best practices require agencies to investigate abnormally low bids to determine if they reflect a mistake, cost-cutting, or an unbalanced bid before award.

  3. The 'cone of silence' or 'quiet period' in public procurement prohibits which of the following?

    Answer: Agency staff from communicating with bidders outside formal channels during active solicitation

    The cone of silence restricts ex parte communication between agency personnel and vendors during active procurements to ensure fairness and prevent bid shopping.

  4. Which type of contract shifts the greatest financial risk to the contractor?

    Answer: Firm-Fixed-Price Contract

    A firm-fixed-price contract obligates the contractor to complete the work at the agreed price regardless of actual costs, placing maximum financial risk on the contractor.

  5. A vendor that is debarred from federal contracting is:

    Answer: Prohibited from receiving government contracts for a specified period

    Debarment is an exclusion action that prohibits a vendor from participating in government contracting for a set period due to serious misconduct or performance failures.

  6. What is the primary purpose of a performance bond in public contracting?

    Answer: To ensure the contractor completes the project according to contract terms

    A performance bond is a surety instrument that protects the government by guaranteeing the contractor will fulfill all contractual obligations.

  7. Which principle requires that public procurement be conducted openly so that all eligible vendors have an equal opportunity to compete?

    Answer: Full and Open Competition

    Full and open competition is a foundational procurement principle that prevents favoritism and ensures the government gets the best value through competitive market forces.