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
A city uses 'cooperative purchasing' by piggybacking on a state contract. What is the primary benefit of this approach?
Answer: It saves time and money by leveraging pre-negotiated pricing and terms
Cooperative purchasing allows agencies to use contracts already competitively solicited by another government entity, reducing administrative burden and often achieving volume pricing.
Which document formally notifies a winning bidder that the government intends to award them a contract?
Answer: Notice of Award (NOA)
A Notice of Award formally communicates the government's intent to award and triggers the pre-contract period during which the contractor finalizes insurance, bonds, and signatures.
When evaluating competitive proposals, what does 'best value' procurement emphasize?
Answer: Awarding to the vendor whose proposal provides the optimal combination of price and non-price factors
Best value procurement weighs technical merit, past performance, and other non-price factors alongside cost to maximize the overall benefit to the government.
What is the function of a 'bid bond' in public construction procurement?
Answer: To ensure the bidder will enter into the contract and provide required bonds if awarded
A bid bond protects the government if the winning bidder refuses the award, compensating for the difference between the low bid and the next acceptable bid.
A public manager wants to purchase $800 worth of office supplies for an urgent need. Which procurement method is most likely appropriate?
Answer: Micropurchase or petty cash
Micropurchase thresholds (currently $10,000 under federal rules, lower for some jurisdictions) allow small purchases without competitive bidding for routine, low-cost items.
What is 'bid rigging' in public procurement?
Answer: An illegal agreement among vendors to manipulate the competitive bidding process
Bid rigging is a form of collusion where competitors coordinate bids to predetermine the winner, defrauding the government and violating antitrust laws.
Which clause in a public contract typically allows the government to end the contract without cause by compensating the contractor for completed work and reasonable costs?
Answer: Termination for Convenience
The Termination for Convenience clause gives the government flexibility to end contracts when work is no longer needed, without needing to prove contractor fault.