CPWM Contract Management & Procurement

Question 1

What is the primary purpose of competitive bidding in public works procurement?

Accepted Answer

To promote fair competition and obtain best value for public funds

Answer

To ensure the lowest possible contract price

Answer

To limit the number of contractors eligible for public projects

Answer

To simplify the administrative process for awarding contracts

Question 2

Which document formally invites contractors to submit bids for a defined public works project?

Accepted Answer

Invitation for Bid (IFB)

Answer

Request for Proposal (RFP)

Answer

Request for Qualifications (RFQ)

Answer

Notice of Intent (NOI)

Question 3

What is a bid bond in public works contracting?

Accepted Answer

A surety guarantee that the bidder will enter into contract if awarded

Answer

Insurance that covers workers injured during bidding site visits

Answer

A financial penalty imposed on late bid submittals

Answer

A deposit required to obtain project bid documents

Question 4

Which procurement method is most appropriate when selecting based on qualifications rather than price alone?

Accepted Answer

Qualifications-Based Selection (QBS)

Answer

Invitation for Bid (IFB)

Answer

Sole Source Procurement

Answer

Reverse Auction

Question 5

What is the purpose of a performance bond in a public works contract?

Accepted Answer

To ensure the contractor completes the project according to contract terms

Answer

To guarantee the contractor pays their subcontractors and suppliers

Answer

To cover the agency's legal costs if contract disputes arise

Answer

To reimburse the agency for bid document preparation expenses

Question 6

What is the prevailing wage requirement in public works contracts?

Accepted Answer

The wage rate contractors must pay workers based on local union rates for the project trade

Answer

The minimum wage set by federal law for all employees

Answer

A bonus paid to workers for completing projects ahead of schedule

Answer

The maximum wage a contractor may pay to control project costs

Question 7

Which contract type places the greatest financial risk on the contractor by fixing the total price regardless of actual costs?

Accepted Answer

Firm fixed-price (lump sum) contract

Answer

Cost-plus-fixed-fee contract

Answer

Time and materials contract

Answer

Cost reimbursable contract