CPPB Domain II Sourcing Practice Test

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• Which option correctly lists the components of a Buying Plan?
• ITAR stands for which regulation?
• In the context of FOB terms, what does 'FOB Origin' imply about ownership and transfer?
• Which process cannot start without appropriate administrative approval?
• If goods are repeatedly needed but quantities are not reliably defined, which procurement method is commonly used?
• Which of the following best describes small dollar purchases in terms of transaction frequency?
• Which term best describes a contract document's section that contains boilerplate terms and defines rights and obligations?
• Which term describes a mechanism to ensure sub-suppliers are paid by the prime contractor?
• Which description best captures the Make, Lease or Buy Concept?
• Which model is described as often labeled a public-private partnership and may include private financing?
• Recovery meaning?
• Which contract type would be selected when it is desired to have consistent pricing and simple administration?
• A spot purchase would be most appropriate for which scenario?
• What is the primary focus of contract administration in procurement?
• Which law prohibits a governmental agency from spending funds beyond those that the legislative body appropriates for it?
• Imperfect competition can result from which practice?
• Stockless purchasing?
• A protest in procurement is best described as?
• Which procurement method contracts design and architectural/engineering services before the construction solicitation document is prepared?
• Just in Time delivery is designed to reduce which of the following problems?
• A bidder that fully conforms to the bid and demonstrates adequate capability would be described as which?
• Tolerances specify what kind of allowance?
• Which bond protects the public entity from loss due to the inability of the bidder to complete the contract as agreed?
• Retainage is used to ensure payment to which party?
• SOO stands for what in procurement terminology?
• Which procurement method involves two primary parties—the entity and a single contractor or joint venture?
• Milestone payments are similar to progress payments and are tied to successful completion of predetermined milestones.
• Which pricing strategy is based upon the perceived or actual value that the procurement professional will receive?
• Joint-use agreements are most commonly used to manage shared access to which of the following assets?
• Which contract type provides no inducement to reduce costs?
• In the Funding Review Process, what must be checked and verified?
• Invitation to Negotiate is used when it is in the procurement authority's best interest to do what?
• What is the primary objective of material management?
• Which term describes the item of service purchased through specifications?
• Performance specifications describe what?
• Which function is responsible for advising management on market conditions and Make or Buy decisions?
• Which pricing strategy prices based on the customer's current demand and the willingness of competitors to supply similar products or services?
• Which statement best describes a Letter of Interest (LOI)?
• Indefinite delivery with a definite quantity is used when what is specified?
• Market Grades are used when procuring commodities that are traded regularly on the commodity exchanges. Which option best describes the context?
• What does NOI stand for?
• Just in Time (JIT) describes which delivery approach?
• Which term describes the attempt to obtain urgently required materials from a supplier at premium cost?
• Which bond guarantees that subcontractors will be paid for labor and materials expended on the contract?
• Under FOB Destination terms, who pays freight and who owns goods in transit?
• Which document is the primary form of price analysis used in government procurement?
• Blanket orders are typically used for which scenario?
• Brand name specifications identify a product by which of the following?
• Perfect competition exists under which condition?
• What best describes the Staff Function in procurement?
• RFP process cannot start without which requirement?
• What is the primary purpose of a Request for Information (RFI)?
• Which statement about systems contracts is true?
• Which document is also known as competitive sealed bidding?
• Lead Time includes the period for which activity?
• What is a term contract?
• Who is typically invited to a debriefing session?
• Which description corresponds to the Pareto Principle in procurement?
• Which Bond type is an insurance against losses due to the dishonesty of an employee?
• Operating Leases are characterized by their duration. Which statement best describes them?
• Which contract type involves compensation based on a subjective evaluation of supplier’s efforts in meeting agency needs?
• MRO refers to which category of commodities?
• Incentive contracts include payment terms that allow the agency to pay for performance that reaches predetermined goals such as reducing costs, expedited delivery and performance above the level specified.
• Request for Quotation is commonly known as informal competitive bidding and is generally used for what type of orders?
• What is a Specification?
• Prices do not change during the term of the contract.
• Which arrangement is described as sharing arrangements that increase the supplier's profit if costs are kept below pre-established targets?
• Which contract type includes a means to reward the contractor for reaching predetermined goals to reduce cost or exceed contract requirements?
• IFB is another term for what process?
• APL stands for which list?
• Benchmarking is the act of measuring a process, service or product against the characteristics of which of the following?
• The document typically developed by procurement to be included in the solicitation to procure services or other more complex combinations of products and services, sometimes referred to as a Performance Specification, is called what?
• Which concept measures all cost components across the procurement lifecycle?
• Which term is associated with reimbursing actual costs plus a fixed fee?
• The term that describes a statement of objectives that guides procurement focusing on outcomes rather than prescriptive tasks is which of the following?
• What are the four groups of the supplier marketplace?
• Which term describes a written change, addition, alteration, correction or revision to a bid, proposal or contract document?
• Which term describes price in effect at time of shipment?
• Which term is used to describe a pricing approach that allows price changes at a future date according to a preselected method?
• Which law permits parties to sue each other for damage to a person or property?
• Which statement best describes how late bids are treated in procurement practice?
• Administrative Laws are defined as which of the following?
• Which authority is explicitly given in direct language rather than inferred from conduct?
• Which best describes inherent authority in government contracting?
• What describes the Line Function?
• A Buying Plan should consist of which components?
• Which term refers to the precise description of the physical or functional characteristics of a product?
• Which procurement document is used when the award is based on the qualifications of the supplier rather than price?
• What is the primary purpose of the Best and Final Offer (BAFO) in negotiations?
• What term refers to a written change, addition, alteration, correction or revision to a bid, proposal or contract document?
• What is the intended result of a protest?
• QPL products and services are evaluated in advance of the solicitation process through various methods such as?
• An open-end contract is best described as
• Which characteristic applies to an open-end contract but not a term contract?
• Which term is used to describe the range of acceptable variation in a designated measurement?
• Which market structure has many buyers and a single seller with no close substitutes?
• CSA stands for which organization?
• Which term is included as a primary source of procurement law alongside statutory and administrative law?
• What does the Unit Price Book establish?
• A blanket order is best described as
• Lead Time is defined as which of the following?
• QPL is the abbreviation for which list?
• Which entry is the acronym for a book listing unit prices for construction items?
• Recovery is characterized by obtaining urgently required materials at what cost condition?
• Design Specification establishes
• MRO commodities are typically characterized by which of the following?
• Which statement best describes competitive negotiation?
• Which statement best distinguishes sole source procurement from single source procurement?
• A supplier that has submitted a bid or proposal that fully conforms in all material respects to the bid is called what?
• Definition: A payment method used to allow the contractor to invoice the government upon delivery and acceptance of partial deliveries of goods or performance services.
• Which specification type might be used to require a laptop model from a specific manufacturer?
• Which term represents the proposed solution by the successful proposer responding to the Scope of Work?
• Which entry describes the document that establishes unit prices for construction line items?
• What does RFI stand for in procurement?
• Which pricing form is similar to CPIF but reimburses all allowable costs leaving the supplier with no risk?
• In procurement practice, which term denotes open competition among eligible bidders?
• What must laws and regulations allow for to enable Cooperative Procurement?
• Which statement best describes the relation between bulk purchasing and inventory management?
• Open Market Procurement is best described as which of the following?
• In the four-step process for Make, Lease or Buy, which is the first step?
• Life Cycle Cost (LCC) is best described as?
• Which term is a public notice issued to announce the intended award to a supplier?
• Which contract type helps lock in prices for commodities that experience sudden price spikes?
• Which contract type has a specific requirement quantity and a delivery date established?
• Which pricing method is commonly used for repairs when the amount of work or labor cannot be predicted?
• Which authority occurs when a principal allows or permits a person to function in a capacity that creates the illusion that the person is an authorized agent of the principal?
• What is the primary purpose of retainage in construction contracts?
• What is Cost Analysis?
• Which contract type fills all actual purchase requirements for specific supplies or services during the contract period from the selected supplier?
• Requirement Analysis is best described as
• Which term describes the practice of encouraging competition among bidders during procurement?
• Which law imposes punishment such as imprisonment or fines for an act deemed to be criminal?
• Which authority arises when the principal's conduct leads a third party to believe the agent is authorized to act?
• Which statement best describes Central Stores Management?
• Single source procurement directs purchases to one source due to which factors?
• What is forecasting used for?
• Which contract type is often used for contracted service contracts to reward high quality performance?
• Sole Source arises when which condition is true?
• What are the three primary sources of procurement laws in most jurisdictions?
• RFQU stands for which of the following?
• Which of the following is a contract pricing strategy?
• How is the RFP process typically described?
• Which market structure is defined by a single seller controlling the market?
• Which contract type guarantees that the price will not change during the contract term?
• In which scenario would you primarily consider TCO/LCC?
• Which term refers to competition that is open to all qualified bidders?
• Which list specifies approved products for procurement?
• Which procurement method involves a single contract for routine services for an infrastructure or facility operation, repair and maintenance?
• Strategic Sourcing is the methodology to analyze what and how a jurisdiction acquires products and services with the objective of lowering costs to the organization and improving supply fulfillment from the producers level to the end user.
• Requirement Analysis is typically done
• TCO/LCC is most appropriate when which conditions exist?
• BAFO stands for which phrase?
• Which market condition exists when a few companies dominate the market for a product or service?
• Lead time definition?
• Under FOB Point of Origin terms, who generally pays the freight and when does ownership transfer?
• Design Specification establishes which of the following?
• An formal bid/proposal is described as
• Which description best matches Joint-use agreements?
• Which pricing strategy would be used when pricing is based on current market demand and competition?
• Which model is an innovative construction procurement approach often labeled a public-private partnership, involving private financing and often combines construction and management or operations contracts?
• What characterizes a partial payout lease?
• Which term describes the heart of the contract, outlining rights and obligations and boilerplate terms?
• Which term is defined as similar to CPIF but reimburses all allowable costs with no risk to the supplier?
• Which document is used to solicit proposals and evaluate on multiple criteria including price and technical merit?
• Which term describes standard contractual language included to address general terms and conditions?
• In stockless purchasing, who typically bears the inventory responsibility?
• Stockless Purchasing specifically describes a system where the buying organization has which responsibility?
• ABL stands for which list?
• Which specification type would best ensure a vehicle used by police is selected based on both design and performance attributes?
• Which statement best reflects the 80/20 Rule?
• Which term is used to solicit information from the supplier community?
• Performance specifications is also known as?
• Stockless Purchasing is best described as which system?
• IFB stands for
• Which term describes the risk associated with the proposal process in contracting?
• Which procurement method allows for discussions with responsible offerors who submit proposals?
• Which acronym is associated with a list used to prequalify items before solicitation?
• Which law is based on customs and traditions and codified through the legal system?
• Which procurement method is price motivated and serves as the basis for award when requirements are met?
• Definition: A set of principles, processes and tools that assist governments to maximize relationship value with suppliers and minimize risk and management overhead through the entire supplier relationship life cycle.
• Which procurement method is based on a competitively bid indefinite-delivery-indefinite quantity contract between an entity and a construction contractor?
• What is the role of market research?
• Indefinite quantity and indefinite delivery is used to establish a minimum and maximum quantity that can be ordered within a definite delivery period.
• Which pricing strategy is described as pricing oriented toward the market?
• Which contract type is most commonly used because pricing remains the same?
• At what stage is Requirement Analysis typically performed?
• Which contract type is used when items to be purchased cannot be defined and are ordered on an as-needed basis?
• Spot Purchases (spot buys) are used for
• Statutory Laws are defined as which of the following?
• Which contract type ties changes in price to an objective benchmark?
• Which term describes the person who acts on behalf of the principal?
• In the four-step Market Research process, which is the final step?
• Market Oriented pricing defines prices according to the range of the quality of the product or service provided by the supplier.
• Which procurement type is used for a purchase made due to an unexpected and urgent request where health and safety or the conservation of public resources is at risk?
• Which function in Central Stores Management involves deciding which items and how many to maintain in inventory to manage them in the most economical, efficient and effective manner?
• Which term describes a person authorized by a superior to act him or her?
• Which term describes one who employs an agent?
• Which authority is identified by inferences from the principal's conduct toward the agent?
• Which statement best describes the law of agency?
• The invitation for Bid IFB is the method that awards to which bidder?
• Advance payments are the least used method of payments and pose the most risk to the government.
• Bid tabulation is described as what?
• Which contract type specifies that price is adjusted up or down at a stated time during the contract using a pre-selected method?
• Request for Proposals allows the reviewer to consider factors other than price when evaluating proposals. Which document is described?
• Which term refers to the body of rules governing the relationship between principals and agents?
• Which contract type is also known as fixed price with escalation and provides for upward and downward adjustment?
• Fixed price with economic price adjustment is primarily designed to handle which risk?
• SRM stands for
• Sole source procurement occurs due to which situation?
• Performance or completion bond: Protects the public entity from loss due to the inability of the bidder to complete the contract as agreed.
• Fidelity Bond: insurance against losses due to the dishonesty of an employee.
• Sole Source procurement occurs when?
• Which procurement method is used for routine operation and maintenance services for infrastructure or facilities?
• Definition: Review and evaluation of cost data for the purpose of arriving at costs actually incurred or estimates of costs to be incurred.
• The Make, Lease or Buy Concept is best described as a?
• SRM (Supplier Relations Management) is a set of principles, processes and tools that can assist governments to maximize relationship value with suppliers and minimize risk and management overhead through the entire supplier relationship life cycle.
• The process of examining and evaluating a prospective price without performing cost analysis is called?
• What does UPB stand for in construction procurement?
• Which contract type is appropriate when it is possible to accurately predict the costs and when it is reasonable to ask the supplier to assume responsibility for all costs?
• Partial payments are used to allow the contractor to invoice the government upon delivery and acceptance of partial deliveries of goods or performance services.
• Payment bond: Guarantees that subcontractors will be paid for labor and materials expended on the contract.
• Total Cost of Ownership (TCO) refers to what?
• Which term describes items that have been examined and tested and have satisfied all applicable qualification requirements?
• Which contract type would be used to establish a minimum and maximum quantity within a delivery period?
• What best defines the Service Function in procurement?
• In a market with a few dominant firms and sometimes differentiated products, which structure best fits?
• In the Four Step Process for Market Research, which is the second step?
• Which term describes authority that is explicitly stated in writing or in speech?
• Which contracts are included under contracts for volume purchases?
• What distinguishes a systems contract?
• Definition: Payments made to assure acceptable performance and progress on a contract.
• In the Make, Lease or Buy analysis, after defining outputs and calculating outsourcing savings, what is the next step?
• Which statement best describes a financial lease?
• Which term is a post-solicitation activity used to inform unsuccessful bidders about the evaluation?
• In procurement terminology, SOW stands for what?
• Combination Specifications description includes what?
• Which contract type is used when a realistic price can be determined for initial periods but not for subsequent periods?
• Progress payments are made to assure acceptable performance and progress on a contract.
• Which term describes a formal objection to a solicitation or contract award?
• Which pricing strategy involves adding a margin of profit to reasonable labor, material and overhead costs?
• FOB Point of Origin, freight collect: Point of origin, freight collected, buyer pays for freight, seller arranges it.
• Which list specifies approved brands for procurement?
• What is the term for a written objection aimed at obtaining a remedy?
• FOAC stands for Full and Open Competition. Which statement best describes its purpose?
• Definition: A methodology to analyze what and how a jurisdiction acquires products and services with the objective of lowering costs and improving supply fulfillment from the producer to the end user.
• The Qualified Products List refers to what?
• Which authority is not defined expressly, but determined by inferences and reasonable deductions arising out of the conduct of the principal toward the agent and the agent's actions?
• Which contract type is used when the public agency agrees to purchase all requirements for a certain period of time from the contractor?
• What is a key benefit of bulk purchasing in materials management?
• Term contracts are typically structured on a quarterly, six-month, annual or multi-year basis and
• Which concept includes the time value of money and disposal costs?
• Price Analysis is defined as what?
• Controlled Goods are items that come under which category?
• FOB Point of Origin, Freight prepaid and allowed: Buyer owns goods in transit, supplier pays freight expense.
• In a full payout lease, which costs does the lessee typically pay?
• Market research is defined as which activity?
• Debriefing is practiced primarily during which procurement phase?
• Which term describes financial capability, management capability, past history and integrity?
• CGR stands for what regulation?
• Which term describes a market with artificial restrictions on competition, such as preferences or territorial restraints?
• Under FOB Point of Origin, Freight Collect, who pays for freight and who arranges the shipment?
• PWS stands for what in procurement terminology?
• Which option is NOT a step in the Four Step Process for Market Research?
• What are the four steps in the Four Step Process for Market Research?
• UL stands for which organization?