Fixed-Price Escalation/De-escalation
The procurement officer of the governmental agency has expressed serious concerns
about the number of repetitive requisitions, solicitations and purchase orders that are
being processed to purchase gasoline for the organization. Every time a new order i...
CPPB TEST 2 Questions and Answers
2024/2025
Fixed-Price Escalation/De-escalation
The procurement officer of the governmental agency has expressed serious concerns
about the number of repetitive requisitions, solicitations and purchase orders that are
being processed to purchase gasoline for the organization. Every time a new order is
placed, another requisition is created and the prices paid by each department are not
consistent; sometimes more and sometimes less depending on competition and timing.
The buyer advises that the solution would be to use what type of contract?
Instituting a purchasing card program
A governmental agency with a centralized procurement department has a threshold
for small purchases of $1000 and three quotes are required above that figure. There
has been a steady increase in the number of requisitions along with recent complaints
from internal customers about it taking too long to buy what they need. Which of the
following actions is most likely to have the biggest impact on reducing costs and saving
time in the long run?
Address with on-site supervisor/contractor
A governmental agency has been having problems with a supplier's performance and
ma terminate their contract with the supplier. Which of the following would be the best
first step in addressing the issue with the supplier?
Line Item Budget
An agency uses a budget in which appropriations are approved for different classes
of expenditures. Each class is broken into sub-classes against which funding for services
and commodities can be applied. This budget approach maximizes control and ensures
financial accountability. What type of budget is this?
The Procurement Department is considering the acquisition of 10 high volume multi-
function printers at a unit cost of $20,000. The printers have and 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?
Use the "Cure Notice" procedures and give notice of the failures to the supplier
The supplier of a performance based contract that has an initial three year term with
two one-year extensions upon satisfactory performance, has failed to perform in
accordance with specified delivery schedules. They also do not respond to quality
issues in a timely manner. The supplier has not been given formal notice of the
problems. The internal user does not want the contract extended for the remaining two
one-year periods, and wants to terminate the contract immediately for cause. What
should the contract administrator do?
Forming
The members of the team are getting to know one another and learning about the
knowledge and skills that each brings to th e team
Issue a change order under the existing contract
A supplier has completed the work identified in the specifications, but the government
agency has determined that additional work is required to complete the project. What
should the buyer do to get this work done.
Cost avoidance
A procurement department is diligent to ensure that a solicitation does not have to be
cancelled and re-competed. This activity achieves what organizational goals?
Provides a common repository for data
Which of the following is a benefit of an automated procurement system?
cooperative contract
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