CPPB Full Prep Exam (440 Questions and Answers). | Exams Marketing | Docsity (2024)

Download CPPB Full Prep Exam (440 Questions and Answers). and more Exams Marketing in PDF only on Docsity! CPPB Full Prep Exam (440 Questions and Answers). An entity purchases several different types of mobile phones to meet employees' preferences. This is causing inefficiencies. What action can be taken to address and correct the inefficiencies? A. creation of performance specifications B. sole sourcing C. benchmarking D. standardization - Verified Answer standardization A buyer has been invited to join a supplier account rep for lunch to discuss the performance of a contract. How should the buyer respond to the invitation? A. decline the supplier's offer and suggest a meeting in the office B. join the supplier for lunch, but pay for himself C. ask the end user to join the supplier and the buyer for lunch anc count it as a business meeting D. report the supplier to the supervisor - Verified Answer decline the supplier's offer and suggest a meeting in the office A buyer has been working on a solicitation for several days. Now the end users have requested that the buyer mail the bid only to local suppliers. How should the buyer respond to this request? Add language to the bid that only local suppliers can submit proposals B. explain that agency procedures require that all bids be electronically posted to allow for open and fair competition C. explain that he can only put "Buy America" language in bid specifications - Verified Answer explain that agency procedures require that all bids be electronically posted to allow for open and fair competition The ratio between inputs such as staff hours or salary and outputs is a way of measuring what attribute? A. efficiency B. effectiveness C. contributions D. progress - Verified Answer efficiency Legislation enacting a sustainable procurement initiative was passed during this legislative session. The agency has a limited staff and resources with which to implement the legislation. What type of program would be most easily implemented? A. alternative fuel vehicles B. energy efficient equipment C. recycled paper D. comprehensive recycling program - Verified Answer recycled paper At an entity hosted small business educational and outreach workshop, the entity small business program coordinator noticed that only a few suppliers are actively participating in asking questions and discussion. In reaction, she works diligently to engage other suppliers who are not contributing. What role is she assuming? A. encourager B. observer C. information seeker D. gate keeper - Verified Answer gate keeper The city's IT dept has a need to purchase 20 copies of a how-to-use over- the-counter software book for various user departments within the agency. The book is commonly available and it is estimated that the total cost would be $900, which is below the established bid threshold. The buyer has confirmed that the book is not currently on any agency contracts. Which type of purchase is considered most economical in this case? A. emergency B. sole source C. pcard D. invitation for bids - Verified Answer pcard A buyer wishes to enter into a cooperative purchase with a regional alliance that could save a great deal of money. What is the buyer's first step? A. Determine if there is legal authority to do this B. Determine if the cost is advantageous C. Determine if local suppliers are impacted D. Determine if your terms and conditions are in compliance - Verified Answer determine if there is legal authority to do this While on vacation the Chief Procurement Officer left a Procurement Manager in charge of operations via an interoffice memo. The Procurement Manager was faced with an emergency purchase that needed signature for $50K. What gives him the authority to sign for this emergency purchase? A. apparent authority B. express authority C. the Procurement Manager has authority to sign because it is an emergency purchase D. implied authority - Verified Answer express authority An agency with a local small business preference program is accepting bids for a roofing project. Only Company C is in the local jurisdiction. Businesses located outside the local jurisdiction will have 5% of the bid amount added to their total bid amount. Company A bids $49,300. Company B bids $49,150. Company C bids $51,650. Company D bids $51,640. Which company should receive the award based on total low bid? - Verified Answer B $49,150 The procurement professional was tasked with organizing a negotiation with a new contractor for a long term contract for the supply of widgets. Neither side will budge on some moderate issues. What planning activity could the official have put more effort into to avoid this impasse? A. conducting a mock negotiation B. analyzing the other side's tactics C. generating a variety of options D. designing optimal solutions - Verified Answer generating a variety of options During the negotiation, it may be necessary to do which of the following? A. hide your intentions from the other team B. rigidly adhere to specific details C. anticipate the other party's tactics and plan counter-tactics D. adjourn and conduct brainstorming sessions to develop team options - Verified Answer anticipate the other party's tactics and plan counter-tactics A buyer is meeting with a new supplier for the first time to begin negotiating a maintenance contract for the company's products and equipment. What key items should the buyer cover with the supplier? A. terms and conditions of that contract B. agency procedures C. supplier handbook D. contractual terms and the supplier guidelines developed by the entity - Verified Answer contractual terms and the supplier guidelines developed by the entity What is the responsibility of a procurement professional when conducting a negotiation? A. achieve the agency's expected results at all costs B. document, record and acknowledge each step of the process C. ensure that all members of the negotiation team have rehearsed strategies and roles D. ensure that the other party has a comfortable and amiable negotiation environment - Verified Answer document, record and acknowledge each step of the process On what are good negotiated agreements based? A. the interests of both parties B. a balance of powers C. the position of both parties D. good friendships between both parties - Verified Answer the interests of both parties The agency team is anticipating a tough negotiation. What action should they take to ensure that they are protecting themselves from making a bad agreement? A. conduct a mock negotiation B. establish a bottom line C. develop a BATNA D. bring in a mediator - Verified Answer develop a BATNA A team is trying to reach an amicable agreement with a supplier. On what should they focus? A. the positions of both sides B. mutual interests C. the bottom line D. the problem - Verified Answer mutual interests An agency is about to enter the negotiation of a complex agreement. What guidelines should be used to choose the team? A. high profile managers who will stand up to the other side B. a team member to match each of the members on the other side's team C. a team of lawyers and financial analysis D. those who have essential skills and knowledge relevant to the negotiation - Verified Answer those who have essential skills and knowledge relevant to the negotiation What signals the completion of the negotiation? A. an agreement reached at the negotiation table B. a written and executed contract C. finalized negotiation documentation D. selection of the type of contract to be used - Verified Answer a written and executed contract After the negotiation team is chosen what important preparatory step should be taken next? A. establish the ground rules B. conduct a mock negotiation C. agree on the goal of the negotiation D. determine who will document the negotiation - Verified Answer establish the ground rules A contractor has appealed a decision rendered by the authorities. What determines if the contractor must continue working? A. contract termination clause B. contract terms and conditions C. contractor's scope of work D. request for equitable adjustment (REA) - Verified Answer contract terms and conditions An agency's warehouse operator received a shipment of 50 boxes of screws. After a cursory expection, the operator begins using the screws immediately. After using about twenty of the screws over the next two days, the operator is disturbed by the fact that 8 of the 20 screws used, cracked after about six hours of use. At that point, the operator started to inspect the remaining boxes and realized that several screws in each box appeared to have a crack or had what looked dlike a weak spot in the middle, concluding that the screws were defective. The operator calls the seller and lets him know he is revoking acceptance of the shipment. The seller says he cannot revoke the shipment because the goods were accepted 2 days ago. Legally, what is the best explanation of this situation? A. Within a reasonable amount of time, the agency has a right to revoke acceptance when they become aware of a latent defect. B. Because the - Verified Answer within a reasonable amount of time, the agency has a right to revoke acceptance when they become aware of a latent defent An award for a large construction contract has been made and the post- award conference has taken place. What should the contract office do next? A. make sure the contractor understands the technical requirements B. produce a formal report summarizing the major issues and identify issues not resolved C. discuss payment proceedings D. schedule a follow up meeting to monitor performance - Verified Answer produce a formal report summarizing the major issues and identify issues not resolved An agency purchases color toner for their printers from a supplier through a bid process. The delivery of the toner has been an issue and recently the cartridges have been malfunctioning in the printers. What should the buyer do first? A. terminate the contract for non-performance B. document the performance in the supplier file and notify the supplier for corrective action C. purchase the toner from the next low bidder D. finish the contract and remove the supplier from the next bid - Verified Answer document the performance in the supplier file and notify the supplier for corrective action A buyer was informed that the roof of a new building delivered for official occupancy six months ago was leaking. A third party roof engineer hired by the agency determined that the leaking was due to the inconsistent mil thickness of the roofing membrane material. The buyer can request the roofing manufacturer to compensate them for what reason? A. latent defect B. patent defect C. substantial completion D. acceptance of minor nonconformities - Verified Answer latent defect A contract is issued for a road resurfacing project. The contractor commences the work but after a day, phones the buyer to say that the project will be delayed. The contractor states the specifications were not accurate and there is a requirement to add aggregate to raise the road level. What is the buyer's first step? A. issue a purchase order for the additional aggregate B. phone the project authority to find out when the contractor started C. contact the legal dept D. review the contract with the project authority and the contractor to determine the problem - Verified the contractor a reasonable amount of additional time for delivery C. declare this delay as grounds for default and issue a cure letter to the contractor D. refer to tort law and procedures in her jurisdiction - Verified Answer declare this delay unforeseeable and allow the contractor a reasonable amount of additional time for delivery The statewide master contract for furniture systems requires that the supplier maintain safety stock levels that can accommodate the state's anticipated short-notice requirements due to lack of warehouse space in remote areas of the state. What type of inventory management is this? A. first in, first out B. min/max levels C. last in, first out D. just in time - Verified Answer min/max levels While conducting post award activities, the procurement staff realizes that the delivery schedule is lagging behind. What should the buyer do to avoid problems with the delivery requirements? A. expedite the deliveries B. remind the supplier of the performance risk clause C. follow up with the supplier D. enact quality assurance steps - Verified Answer follow up with the supplier What action should always be taken when an order is delinquent? A. document it B. investigate it C. protest it D. accept it - Verified Answer document it Good inventory management focuses on what goal? A. providing internal customers with as many different choices as possible B. eventually discontinuing all goods maintained in inventory C. minimizing expenses while maximizing supplies D. shifting all supplies to just-in-time management - Verified Answer minimizing expenses while maximizing supplies The O-rings used with hydraulic cylinder pistons have a shelf life of 2 years. What inventory methodology should the agency's warehouse use to issue these rings? A. LIFO B. FIFO C. JIT D. Procurement cards - Verified Answer FIFO Special chemical-resistant valves for the waste water treatment plant would be classified as what type of item? A. Class A B. Class B C. Class C D. Unclassified - Verified Answer Class A What can a buyer learn from looking at an entity's strategic plan? A. how to respond to political changes B. guidance in handling a current crisis C. how to respond to technology changes D. the allocation of procurement resources - Verified Answer the allocation of procurement resources An entity in Canada wishes to forecast its use of indoor and outdoor pool facility chemicals. Which of the following methods best depicts the usage trends? A. fixed period method B. first in, first out C. weighted moving average method D. economic ordering quantity method - Verified Answer weighted moving average method A buyer is responsible for the purchase of diesel fuel. In order to best meet this agency's needs, what must the buyer do? A. conduct time series forecasts to better predict future costs B. constantly research and scan the market for changes and trends C. conduct a cost/benefit analysis of potential acquisition methods D. determine when and where to curtail expenditures in the event of revenue shortfalls - Verified Answer constantly research and scan the market for changes and trends A customer department is trying to determine what office equipment they need versus what would be nice to have. What type of analysis should be conducted to address this situation? A. conduct a total cost of owernship analysis B. conduct a cost analysis C. conduct a value analysis D. conduct a spend analysis - Verified Answer conduct a value analysis The Chief Procurement Officer for a jurisdiction announces that she will be retiring 3 years from now. What is the BEST next step the jurisdiction should take to ensure a smooth transition for this role? A. identify a current, qualified employee interested in advancement to this position B. provide horizontal training opportunities to all procurement employees C. establish a succession plan structure for the jurisdiction D. schedule retraining sessions for all employees - Verified Answer establish a succession plan structure for the jurisdiction If a govt entity wants to determine how many reams of printer paper to carry in inventory, accurate records of which of the following data is required? A. the number of types of reams that were drawn from inventory last year B. the average increase in price of reams of paper over the past 12 months C. the weekly number of reams of paper type issued for the last 52 weeks D. the number of stock-outs of paper last year - Verified Answer the weekly number of reams of paper type issued for the last 52 weeks Which type of market condition would likely prompt a spot bid? A. political turmoil in the area from which a commodity is purchased? B. history of price fluctuation demonstrates a stable market C. level and nature of competition within the supplier community is consistent D. alternative or substitute products are readily available - Verified Answer political turmoil in the area from which a commodity is purchased The plan describes an objective in detail, specifies the outcome, when it should be finished and its chance of success. Which objective attribute is missing? A. realistic B. assignable C. measurable D. time-related - Verified Answer assignable What step should an agency take after a disaster to ensure continuous improvement of its Continuity of Operations Plan? A. conduct a final accounting of all disaster related expenses B. confirm completion of all required documentation C. confirm that the agency level COOP was aligned with the jurisdictional COOP D. conduct an after action review - Verified Answer conduct an after action review A jurisdiction is in the initial phase of developing a strategic sourcing strategy across all departments. So far, the purchase history of each department for the past fiscal year has been compiled into one database. What is the BEST next step for the jurisdiction? A. generate a Procurement Profile B. gather 2 additional years of purchase history from each department C. begin analyzing the departments' spending patterns D. assess risk levels for each expenditure category - Verified Answer gather 2 additional years of purchase history from each department Procurement Technology - Verified Answer Helps accelerate business improvements Results Oriented Budgeting - Verified Answer Attempts to link a resource allocation to performance criteria Budget Cycle - Verified Answer 1. Planning 2. Formalization 3. implementation 4. evaluation spiraling agreements - Verified Answer begin by reaching a minimum agreement even though it is not related to the objectives and build, bit by bit, on this first agreement changing of position - Verified Answer formulate the proposals in a different way, without changing the final result gathering information - Verified Answer ask for information from the other party to clarify their position making the cake bigger - Verified Answer offer alternatives that may be agreeable to the other party, without changing the terms four activities of a price analysis - Verified Answer 1. review the competitive prices offered 2. compare with catalog or published price data 3. compare with historical prices 4. obtain data from other jurisdictions that have procured the same product or service Conflict resolution - Verified Answer mediation, arbitration, litigation mediation - Verified Answer a voluntary, flexible technique used to resolve disputes arbitration - Verified Answer a process by which a dispute between parties is presented to one or more disinterested parties for a decision whose decision the contending parties agree to accept with no further appear process. litigation - Verified Answer a process by which one party to a contract brings suit against the other party in a court of law general conflict resolution skills - Verified Answer communication, listening, summarize, clarify, good speaking skills, communication side- trackers, win-win options, brainstorming, find a fair solution communication - Verified Answer conflicts are often caused by problems in communication listening - Verified Answer it is important to listen carefully summarize - Verified Answer when a person is finished expressing a thought, summarize the facts and emotions behind what they have said so that they know you have understood what they've said and how they are feeling. clarify - Verified Answer ask questions to clarify or make clearer different parts of the problem to make sure that you fully understand the other person's perspective good speaking skills - Verified Answer send a clear message, with a specific purpose and with respect to the listener communication side-trackers - Verified Answer don't interrupt, criticize, laugh at the other person, offer advice or bring up your own experiences or change the subject win-win options - Verified Answer an idea or suggestion in which both sides can benefit is called a win-win option brainstorming - Verified Answer the first step in problem solving is to come up with as many ideas as possible find a fair solution - Verified Answer then go through the ideas using fair criteria to see which idea might be best basic steps to conflict resolution - Verified Answer 1. personal preparation 2. obtain agreements 3. state your initial positions/issues 4. restate each other's initial position 5. begin workin on solutions 6. summarize points of agreement and produce a solution 7. follow-up personal preparation - Verified Answer review your agreements; be aware of your feelings. obtain agreements - Verified Answer agree on the conflict resolution process, agree to treat each other with respect state your initial positions/issues - Verified Answer take turns, focus on specific incidents, describe behavior and feelings, don't interpret the other's behavior restate each other's initial position - Verified Answer take turns, restate what the other said, make corrections if necessary, reflect on how you feel begin working on solutions - Verified Answer identify underlying issues, define your success criteria and brainstorm mutual solutions summarize points of agreement and produce a solution - Verified Answer create a solution that is as specific as possible, write it down, agree to maintain confidentiality, agree to follow-up follow-up - Verified Answer check on whether the solution is being followed, revise if necessary and discuss what you learned nominal group technique - Verified Answer a group decision-making technique that focuses on generating alternatives and selecting among them by asking group members to independently write down ideas, present them in turn, clarify them for the group and rank them by voting privately. stages of negotiation - Verified Answer Planning, actual negotiations, completion nickel and dime - Verified Answer the other side wants to negotiate each and every point process improvement - Verified Answer increase in value resulting from a modification in any phase of the procurement and/or supply process Process alignment to organization goals - Verified Answer all processes, people and resources should be aligned to business goals Process first - Verified Answer improvement focuses on incorporating cost effective and goal oriented processes electronic sourcing - Verified Answer obtaining bids from different suppliers via a single online portal procedure manuals - Verified Answer written at a finer level that sets out processes, forms, and steps procurement technology - Verified Answer helps accelerate business improvements preference - Verified Answer advantage given to bidders/offerors based on pre-established criteria four types of audits - Verified Answer financial compliance, economy & efficiency, program or evaluations, performance standardization committee - Verified Answer used to create standards purposes of public budgeting - Verified Answer goal attainment, financial control, managerial accountability express authority - Verified Answer explicitly given in direct language rational budget decision model - Verified Answer inter sector efficiency, inter program efficiency, intra program efficiency inter sector efficiency - Verified Answer determines whether or not the cost of a government activity yields more benefits to society than if it remained in the private sector financial and compliance audits - Verified Answer performed by accounting firms to determine whether transactions are recorded and verify accuracy inter program efficiency - Verified Answer judges competing programs and allocates resources to the program that provides the greatest benefits intra program efficiency - Verified Answer determine within each program if resources should be combined to maximize the net benefits from any given expenditure increment performance budgets - Verified Answer relate expenditures to workloads line item budgets - Verified Answer fixed budgets with monies appropriated for a particular period, usually one year other types of budgets - Verified Answer performance budgets, program budgets, zero based budgets, results oriented budgeting implied authority - Verified Answer determined by inferences and reasonable deductions arising out of the conduct of the principal toward the agent apparent authority - Verified Answer principal allows or permits a person to function in a capacity that creates the illusion the person is an authorized agent how are policies and procedures maintained? - Verified Answer policy manuals, procedure manuals, supplier manuals program budgets - Verified Answer long range with multiyear plans prepared along with budget requests policy manuals - Verified Answer centrally written and used to guide behavior toward specific organizational objectives higher level management reports - Verified Answer issued to senior management and other key personnel electronic procurement - Verified Answer conducting all or some of the procurement function over the internet simplification program - Verified Answer screening the agency's inventory in order to determine which items should be consolidated, updated, or disposed zero based budgets - Verified Answer relate expenditures and revenue to workloads and organize budget presentations according to "decision packets" of cost centers where alternative levels of service delivery can be specified joint use agreements - Verified Answer agreements between various government agencies that may involve the shared use of public property debriefing - Verified Answer contracting authority will meet with those parties whose proposals were not awarded protest - Verified Answer written object by a potential interested party to a solicitation or award of a contract with the intention of receiving a remedial result cost analysis - Verified Answer review and evaluation of cost data for the purpose of arriving at costs actually incurred or estimated market oriented pricing - Verified Answer occurs when prices are defined according to the range of the quality of the product or service provided by the supplier value based pricing - Verified Answer based upon the perceived or actual value that the procurement professional will receive market based pricing - Verified Answer where pricing is contingent on the customer's current demand and a willingness of the competitors to supply similar products or services cost based pricing - Verified Answer when a margin of profit is added to reasonable labor, material and overhead costs price analysis - Verified Answer process of examining and evaluating a prospective price without performing cost analysis addendum - Verified Answer written change, addition, alteration, correction or revision to a contract document procurement of the product or service - Verified Answer identify potential suppliers of the product or service demand analysis - Verified Answer used to estimate annual requirements based on the previous year plus anticipated use for the upcoming year schedule contract - Verified Answer consolidates agency requirements by pre-establishing a bid opening date and require bid submittals by a certain time systems contract - Verified Answer establishes a source of supply for a specified period for a large group or related family of materials requirements contract - Verified Answer indefinite delivery/indefinite quantity contract where all actual purchase requirements during the contract period are filled by selected supplier open end contract - Verified Answer sets forth general provisions of supplies and services that may be delivered or performed in any given time spot purchases - Verified Answer one time purchases term contracts - Verified Answer structured on a schedule depending upon the volatility of price and the ability of the supplier to deliver for an extended period incentive contract - Verified Answer includes a means to reward the contract for reaching predetermined goals time and materials contract - Verified Answer provides for contractor payment based on a direct labor, hourly rate terms and conditions - Verified Answer standard language that includes rules which apply to bids and offers types of risk - Verified Answer proposal risk, surety/liability risk, contractual risk, schedule risk, performance risk proposal risk - Verified Answer describes the item of service purchased through legal documents and scopes surety and liability risk - Verified Answer protects financial and legal interests of the agency contractual risk - Verified Answer establishes change procedures schedule risk - Verified Answer ensures timely delivery performance risk - Verified Answer defines conditions under which acceptance will occur and what inspection is required definite - Verified Answer specific requirement quantity and delivery date have been established requirements delivery contract - Verified Answer when the public agency agrees to purchase all requirements for a certain period of time from the contractor bid bond - Verified Answer bidder will accept contract as bid or else the surety will pay a specific amount fidelity bond - Verified Answer insurance against losses due to dishonesty of an employee payment bond - Verified Answer guarantees subcontracts will be paid for labor and materials expended on contract performance or completion bond - Verified Answer protects public entity from loss due to the inability of the bidder to complete contract competitive negotiation - Verified Answer method for obtaining goods, services and construction for public use in which may be conducted identification - Verified Answer action of the public agency in recognizing the availability of products or services within marketplace investigate - Verified Answer collecting and analyzing information related to a specific commodity or service market surveillance - Verified Answer high level review of the industry examines all of the activities of the market market research process - Verified Answer market surveillance, investigation, identification, procurement of the producer, or product market research - Verified Answer collecting and analyzing information about capabilities within the market to satisfy agency needs lease-purchase decision - Verified Answer based on the results of a cost/benefit analyses of the costs to own costs to lease, and the advantages and disadvantages disadvantages of leasing - Verified Answer cost and control partial payment leases - Verified Answer gives lessee credit for the residual value of the leased item after the lease period is complete full payment leases - Verified Answer lessee pays the full amount plus interest charges and other costs types of financial leases - Verified Answer full payout leases, partial payout leases financial leases - Verified Answer used as a financing tool and may generate long term benefits operating leases - Verified Answer used to fulfill short-term requirements when there is danger of rapid obsolescence lease option types - Verified Answer operating leases, financial leases life cycle cost - Verified Answer total cost of ownership over the lifespan of the asset supply and demand - Verified Answer quantity of goods available for sale at a given price and the level of consumer need for those goods at a given price performance based contracting - Verified Answer results oriented contracting method that focuses on the outputs, quality, or outcomes that may tie at least to a portion of a contractor's payment statement of work - Verified Answer proposed solution by the successful proposer responding to the scope of work impartiality - Verified Answer unbiased decision-making and action ethics - Verified Answer acting in a manner true to these values (professional values) accountability - Verified Answer taking ownership and being responsible to stakeholders for our actions professional values - Verified Answer accountability, ethics, impartiality, professionalism, service, transparency benefits of technology - Verified Answer reduction, collaboration, accurate and instant information, improved management flows, risk reduction, increase competition, diversity and inclusion, transparency, improved audits Ensuring compliance - Verified Answer interviews, checklists, site visits, samples, demonstrations, tests, inspection Interviews - Verified Answer should be conducted with suppliers when the agency is purchasing new commodities for the first time. checklists - Verified Answer can help track all required documentation and certifications site visits - Verified Answer generally required to ensure that the supplier is aware of the site conditions under which the contract will be performed. samples - Verified Answer provided by suppliers either before or after the opening of bids, as provided for in the solicitation. demonstrations - Verified Answer can be used during the supplier evaluation phase of an RFP for evaluating software to determine if the proposed software meets specifications tests - Verified Answer can be performed on samples after the contract award, but before production begins inspection - Verified Answer another technique used to ensure that the supplier has provided acceptable goods or services three types of inspections - Verified Answer in-process inspection, receiving inspection, final inspection in-process inspection - Verified Answer performed during the manufacturing process receiving inspection - Verified Answer performed upon receipt of goods final inspection - Verified Answer performed upon completion of the contract and prior to final payment to ensure that the item received conforms to the contract requirements methods to ensure compliance - Verified Answer pre-sourcing, during sourcing, post award performance assessment plan - Verified Answer used to evaluate supplier performance seven elements of a contract - Verified Answer offer, acceptance, definiteness, legal consideration, mutuality of obligation, competent parties, legal purpose offer - Verified Answer response to a solicitation that, if accepted, would bind the offeror to perform the resulting contract what is acceptance - Verified Answer 1. indication that an offeree is bound by the terms of the offer 2. an indication by one party of a willingness to act in accordance with the contract or offer 3. the assumption of a legal obligation by a party to a contract to the terms and conditions of that contract 4. the act of receiving by an authorized representative with the intention of retaining definiteness - Verified Answer the important, or material, terms of an agreement, which are specifically expressed legal consideration - Verified Answer something of consideration which is exchanged between parties that serves to form or bind a contract mutuality of obligation - Verified Answer all the parties to an agreement are obligated or none of the parties is obligated competent parties - Verified Answer these are classes of persons that the law deems are capable of entering into an agreement legal purpose - Verified Answer the law will not enforce agreements which are for illegal acts express contract - Verified Answer may be written or oral and is created when the formal elements for establishing a contract exist implied-in-fact contract - Verified Answer occurs when some of the formal contractual elements occur through a person's conduct rather than being explicitly stated in words interpretations of terms and conditions - Verified Answer courts use common law rules of interpretation protocols - Verified Answer there are generally accepted practices regarding business protocols such as the precedence or ordering sequence of contract language interpretation according to the importance of words, format and emphasis cardinal rule - Verified Answer this focuses on the plain language of the contract and the meaning that both parties gave to the text at the time of the contract signing whole instrument rule - Verified Answer gives priority to the meaning of the overall contract as opposed to a section or clause of the contract. express language rule - Verified Answer specifies that when there is a list of words which is followed by a general description of a category, then the contract applies only to the items in the list mechanical rules - Verified Answer include handwritten notes taking precedence over printed text, quantities spelled out in words over the use of numerals and anything written in a conspicuous manner such as larger font non-conforming products or services - Verified Answer these occur when the contractor attempts to deliver or delivers products or services that do not conform to the specifications in the contract force majeure - Verified Answer unexpected or uncontrollable events, including those caused by nature that can impact the contract price, terms and conditions. ordered suspensions - Verified Answer if the public agency orders that work be suspended due to a provision in the suspension of work clause, the contractor may be compensated only if the resultant delay is unreasonable constructive suspensions - Verified Answer occur when the public agency is found to be responsible for the work stoppage and did not issue a suspension of work types of remedies for defects - Verified Answer require the contractor to correct the defects, price reduction, acceptance of minor nonconformities, correction of defects by public agency or an owner require the contractor to correct the defects - Verified Answer an inspection clause should include language that addresses correction of defective work by the contractor price reduction, acceptance of minor nonconformities - Verified Answer the doctrine of substantial completion allows a public agency to accept a product or service with minor nonconformities when correction would cause economic waste or it is not material correction of defects by public agency or an owner - Verified Answer inspection and acceptance clauses typically allow the public agency to replace, correct defective work or perform the services and to charge or offset these costs to the contractor once the contractor is given an opportunity to correct the work and fails to complete the correction within a reasonable time liquidated damages - Verified Answer damages paid usually in the form of a monetary payment, agreed to by the parties to a contract, which are due and payable as damages by the party who breaches all or part of the contract limits to the right to reject - Verified Answer adequate description and measurements, substantial completion, correctable defects, previous action adequate description and measurements - Verified Answer if a specification is not precisely stated or cannot be accurately measured, the public agency can only reject the work if it is not suitable for its intended purpose substantial completion - Verified Answer the doctrine of substantial completion limits the public agency's remedies when rejecting work on the basis of strict compliance correctable defects - Verified Answer major defects are the basis for strict compliance rejection and contract termination previous action - Verified Answer previous acceptance of nonconforming work does not relieve the contractor of strict compliance if the public agency was unaware of the nonconformance guiding principles in contract conflict resolution - Verified Answer think before reacting, listen actively, assure a fair process, attack the problem, accept responsibility, use direct communication, look for interests, focus on the future think before reacting - Verified Answer it is important to think before reacting, consider the options, weigh the possibilities listen actively - Verified Answer active listening means not only listening to what another person is saying with words but also to what is said by intonation and body language assure a fair process - Verified Answer assure that the resolution method chosen as well as the process affecting that method is fair to all parties to the conflict attack the problem - Verified Answer conflicts are resolved when the problem rather than the person is attacked accept responsibility - Verified Answer each party must accept its own share of the responsibility and eliminate the concept of blame use direct communication - Verified Answer individuals should say what they mean and mean what they say look for interests - Verified Answer each party must uncover why they want something and what is really important about the issue in conflict focus on the future - Verified Answer it is important to understand the dynamics of the relationship including the history of the relationship types of alternative dispute resolution - Verified Answer meditation, arbitration, partnering meditation - Verified Answer a neutral third party helps to resolve a dispute partnering - Verified Answer the contracting parties meet after the contract award has been made but before work has begin on a project to identify expectations and set goals types of modifications - Verified Answer bilateral and unilateral bilateral modifications - Verified Answer require the approval of both parties in signatory form unilateral modifications - Verified Answer the public agency's right to make a change to the contract pursuant to the changes clause of a contract, only require execution by the public agency's contracting officer constructive changes - Verified Answer any actions or inactions on the part of the public agency that have not been made through formal change order authority but have caused the contractor to perform additional work that is outside the scope of the existing contract types of constructive changes - Verified Answer contract interpretation, interference, failure to cooperate, nondisclosure of important information, work acceleration, defective or ambiguous specification or work statement known damage - Verified Answer damage that is apparent and acknowledged by the carrier at the time of delivery concealed damage - Verified Answer damage that is not readily visible at the time of delivery by the carrier or the receiver ABC classification of inventory - Verified Answer class A items, class B items, class C items class A items - Verified Answer mission critical to the agency's operation and cannot be without class B items - Verified Answer general commodity items, off-the-shelf materials, high usage rates class C items - Verified Answer very low dollar value and generally high volume activity such as office supplies scrap - Verified Answer consists of ferrous and no-ferrous metals as well as non-metallic scrap such as wood, paper, plastic and other materials that do not meet requirements and cannot be used obsolete supplies and equipment - Verified Answer items that are out of date, no longer in use or are effectively unusable excess - Verified Answer materials no longer needed by the current owner but designated for transfer to another unit within the entity surplus equipment - Verified Answer government equipment that is no longer needed by the agency and is designated for disposal outside of a government organization SWOT analysis - Verified Answer strengths, weaknesses, opportunities, threats spend analysis - Verified Answer The process of collecting, cleansing, classifying and analyzing expenditure data from all sources within the organization forecasting - Verified Answer a tool used to determine future needs make or buy cost analysis - Verified Answer occurs prior to the decision to acquire goods and services fixed period average - Verified Answer a mathematical calculation used to divide the total usage for a fixed period, usually using the last fiscal calendar by the number of months involved moving average - Verified Answer a continuous average method used to gather the most current usage information about an item by taking current trends into account and always using the most recent data weighted moving average method - Verified Answer builds even more accuracy into the system by giving more significance to weighting specific information such as seasonal variations stable market - Verified Answer off-the-shelf commodities are produced representing a reasonable and competitive marketplace unstable market - Verified Answer short-run fluctuations are exhibited in an unstable market considerations of an unstable market - Verified Answer timing, international political situations, weather and growing conditions, speculation and supply and demand timing - Verified Answer a major factor when procuring goods and especially those that are affected by an unstable market international political situations - Verified Answer many commodities utilized by a jurisdiction may be significantly impacted by international political situations weather and growing conditions - Verified Answer market speculation can have an impact on volatile commodities speculation and supply and demand - Verified Answer this applies to unstable commodities such as oil and petroleum-based products term contract - Verified Answer a type of contract in which a source of supply is established for a specified period of time for specified services or supplies SMART objectives - Verified Answer specific, measurable, assignable, realistic, time-based specific - Verified Answer objectives should be specific measurable - Verified Answer in order to be able to use the objectives as a part of a review process it should be very clear whether or not the department has met the objectives assignable - Verified Answer make sure the objective is assigned to someone to achieve realistic - Verified Answer realistic objectives recognize factors which cannot be controlled time-based - Verified Answer the final factor for a good objective is that it is time-based strategic and procurement planning - Verified Answer the transformation of the organization's mission, goals and objectives into measurable activities to be used to plan, budget, and manage the procurement function within the organization supply positioning - Verified Answer an analysis of the complexity of the supply marketplace and its impact on agency service delivery based on such factors as: dependency of agency service delivery upon particular goods and service supply positioning matrix - Verified Answer illustrates the supply continuum and the potential procurement strategies for each quadrant quadrant I - supply positioning matrix - Verified Answer goods and services with a low degree of risk and a low expenditure relative to total procurement spend