FREE CPPO Contracting and Procurement Process Questions and Answers

Question 1

If the procurement department wanted to reduce inventory costs, it would be best for them to consider which of the following options?

Accepted Answer

Contracting for just-in-time delivery

Answer

Reducing inventory and giving less service/support to the end user

Answer

Having the end user procure the goods

Answer

Waiting until the need arises, order the goods, and wait until they arrive

Question 2

The Purchasing Department awarded a contract for the construction of three 52-floor office buildings. Construction was delayed one year for excusable political reasons. The contracting officer approved a change order to add one floor to each building to house a cafeteria, a health center, and a gymnasium for the wellness program. Which of the following is most appropriate for determining an equitable adjustment?

Accepted Answer

Calculate costs reasonably incurred by the contractor plus a reasonable profit

Answer

Calculate costs incurred by other contractors in similar circumstances plus a reasonable profit

Answer

Calculate costs equal to the market value of the additional floor

Answer

Calculate the actual cost of the additional floor plus a reasonable profit

Question 3

An entity is soliciting bids for recycling and the resulting contracts will be candidates for renewal. For a successful renewal, what provision must be included in the terms and conditions of the solicitation?

Accepted Answer

The terms of renewal

Answer

Required good relations with renewing suppliers

Answer

The need for the contract to be renewed

Answer

The enabling legislation that allows for renewals

Question 4

An entity did not renew its contract with a cleaning service but has awarded the contract to another service provider. What should the contract manager do to ensure a smooth change?

Accepted Answer

Develop and follow a detailed transition plan

Answer

Facilitate a meeting between the two contractors

Answer

Make sure he collects all the keys and gives them to the new contractor

Answer

Issue a Notice of Substantial Compliance

Question 5

The entity has a contract with a hazardous material management company to remove asbestos from 83 school buildings. What is the best method for the entity to employ to ensure compliance with the contract specifications?

Accepted Answer

Independent technical testing

Answer

Random sampling

Answer

Spot inspection

Answer

50% inspection by the agency's project

Question 6

In contracts where delinquent performance can result in damage, which provision would be most useful?

Accepted Answer

Liquidated Damages

Answer

Performance Bond

Answer

Contract Warranties

Answer

Termination for Default

Question 7

The entity awarded a contract to complete a four-hundred-mile repaving project. After an economic downturn, the entity had to use the funds allotted for this project for other purposes. What should the entity do?

Accepted Answer

Terminate for Convenience

Answer

Terminate for Cause

Answer

Issue a Cure Notice

Answer

Issue a No-Progress Notice

Question 8

This element of contract administration describes how evaluators will observe, test, evaluate, and document supplier performance.

Accepted Answer

Performance Assessment Plan (PAP)

Answer

Contract Administration Plan (CAP)

Answer

Program Evaluation and Review Technique (PERT)

Answer

Quality Assurance (QA)

Question 9

An entity is negotiating with a long-term supplier over a contract dispute. What should be the goal of this negotiation?

Accepted Answer

Help preserve the parties' business relationship

Answer

Create the foundation for litigation

Answer

Favor the government's position for quick resolution

Answer

Ensure the prevailing party is well-compensated

Question 10

A buyer is in a dispute with a service contractor regarding the terms of their agreement; negotiation has failed. The supervisor would like the buyer to have it resolved in the fairest, most objective, and least costly manner possible. Based on these directives, which would be the best way to resolve the dispute?

Accepted Answer

Mediation

Answer

Renegotiations

Answer

Mini-trial

Answer

Litigation