FREE CPPB Procurement Processes Questions and Answers

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A buyer wants to spot-buy propane. What is the best analysis process to ensure the purchase has value?

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Explanation:
When a buyer wants to spot-buy propane, conducting a market analysis is the best approach to ensure the purchase has value. Market analysis involves researching current market conditions, prices, and trends. This information helps the buyer understand the going rates for propane, the availability of supply, and the best time to make the purchase to get the best value. By being informed about the market, the buyer can make a more cost-effective and strategic procurement decision.

When items are susceptible to a high incidence of latent defects which of the following quality assurance defect prevention techniques should be used to solve this problem?

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Explanation:
Statistical process control (SPC) is a quality assurance technique that uses statistical methods to monitor and control a process. When items are susceptible to a high incidence of latent defects, SPC can help identify and address variations in the manufacturing process that lead to these defects. By continuously monitoring the process and analyzing data, SPC allows for early detection of problems, enabling corrective actions to be taken before defects occur. This helps ensure consistent product quality and reduces the likelihood of latent defects.

A government agency processed a purchase requisition for the purchase of 250 street lights with new LED light fixtures. Which fund should a purchasing agent check to confirm that the money was available for this purchase?

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Explanation:
When confirming the availability of funds for the purchase of street lights with new LED fixtures, a purchasing agent should check the Capital Fund. The Capital Fund is typically used for capital expenditures, such as infrastructure improvements or major equipment purchases, which includes investments in fixed assets like street lights. Checking the Capital Fund ensures that the agency has allocated sufficient resources for this specific type of expenditure.

An agency utilizes a budget where appropriations are allocated for various classes of expenditures, each further divided into subclasses for services and commodities funding. This budget approach enhances control and ensures financial accountability. What type of budget is described?

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Explanation:
In a line item budget, expenditures are categorized by specific line items, allowing for detailed tracking and allocation of funds to different classes and subclasses of expenses. This budgeting approach is commonly used in government agencies to enhance control over expenditures and ensure financial accountability. It provides transparency and accountability by clearly identifying how funds are allocated and spent within each line item category.

The procurement department is considering the acquisition of 10 high-volume multi-function printers at a unit cost of $20,000. The printers have an estimated useful life of 8 years and require the following annual costs per printer: Consumable Supplies $350; Electricity $150; and Maintenance $350. What is the total cost of ownership of the printers?

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Explanation:
To find the total cost of ownership, we add the initial cost of the printers to the annual costs for each printer, then multiply by the number of printers and years of use. This gives us $1,668,000 for 10 printers over 8 years, so the cost for all 10 printers is $268,000.

The county garage manager is responsible for maintaining the stock of often-used commodities such as air filters, engine oil, and brake pads. In order not to overstock, he forecasts the anticipated need based on historical data and making an analysis to determine if any changes in future requirements are anticipated. This analysis is a key function of what process?

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Explanation:
The process described involves forecasting the anticipated need for often-used commodities based on historical data and analyzing potential changes in future requirements. This process is a key function of Inventory Management, which involves overseeing the acquisition, storage, and tracking of goods to ensure optimal levels of inventory while minimizing costs and waste. By effectively managing inventory levels, the county garage manager can prevent overstocking and ensure that essential commodities are available when needed, thereby supporting efficient operations and cost-effectiveness.

On the team, Susan writes down key points on a flip chart pad. What team role is Susan playing?

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Explanation:
In the context of a team, the role of a recorder involves documenting key points, discussions, and decisions made during meetings or discussions. Susan, who writes down key points on a flip chart pad, is fulfilling the role of a recorder by capturing and preserving important information for future reference or action. This helps ensure that the team's discussions and outcomes are accurately recorded and can be shared with relevant stakeholders.

A procurement department is diligent in ensuring that a solicitation does not have to be canceled and re-completed. This activity achieves what organizational goal?

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Explanation:
By ensuring that a solicitation does not have to be cancelled and re-completed, the procurement department is practicing cost avoidance. Cost avoidance involves taking proactive measures to prevent unnecessary expenses or losses. In this case, avoiding the need to cancel and re-do a solicitation saves the organization the additional costs and resources that would be required to restart the procurement process. This contributes to organizational efficiency and fiscal responsibility.

Over the last six years, a buyer has been responsible for soliciting bids and making awards for purchases of milk for each of the 12 schools in his district. Although he has solicited more than four different milk providers during this time, a well-known supplier is the only one that provides a bid response & the bid prices increase by 1.5% each year. Based on this pattern of bidding, what action should the buyer take?

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Explanation:
When a well-known supplier consistently provides the only bid response for milk purchases, and bid prices increase by a fixed percentage each year, it raises concerns about the lack of competition in the bidding process. To address this issue, the buyer should contact all other potential bidders to investigate why they did not bid on the agency's requirements. This action helps identify any barriers or challenges that may be preventing other suppliers from participating in the bidding process, such as restrictive terms, specifications, or procurement practices. It also promotes transparency and fairness in procurement by ensuring that all potential suppliers have an equal opportunity to bid on agency contracts.

The members of the team are getting to know one another and learning about the knowledge and skills that each brings to the team. At what phase of development is this team?

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Explanation:
In the context of team development, forming is the initial phase where team members come together, get to know each other, and understand each other's skills and expertise. This phase is characterized by orientation, introduction, and exploration. It's the starting point of team development before progressing through storming, norming, and finally performing, where the team achieves its peak effectiveness.

Upon receipt of a Purchase Requisition for a small buy commodity, what is the first step the buyer should take?

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Explanation:
Upon receipt of a Purchase Requisition for a small buy commodity, the first step the buyer should take is to check if the item is available in surplus stock. Surplus stock refers to excess inventory or materials that the organization already possesses. Utilizing surplus stock for small buy commodities can help reduce costs and expedite the procurement process. If the item is available in surplus, it may eliminate the need for a new purchase, saving time and resources. Therefore, this step is crucial in efficient procurement management.

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