Purchasing and Supply Chain

Management 7th Edition Weele Test

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Chapter 6 - Public procurement

1. Which of the following best explains ‘value for money’ in procurement?
a. Buying a product that is fit for purpose, taking account of the whole-life cost.
b. Buying a product at the cheapest price.
c. Buying a product efficiently.
d. Buying a product effectively.
ANSWER: a

2. Which of the following disciplines is involved in public procurement?

a. Economics.
b. Sociology.
c. Psychology.
d. Biology.
ANSWER: a

3. Which of the following disciplines is involved in public procurement?

a. Psychology.
b. Public administration.
c. Sociology.
d. Chemistry.
ANSWER: b

4. Which of the following disciplines is involved in public procurement?

a. Psychology
b. Biology
c. Public finance
d. Chemistry
ANSWER: c

5. Which of the following countries are not full members of the European Union (EU)?
a. Russia
b. France
c. Slovenia
d. Belgium
ANSWER: a

6. Which of the following countries are not full members of the European Union (EU)?
a. Malta.
b. Canada.
c. Slovenia.
d. Ireland.
ANSWER: b

7. How many European Public Procurement Directives are there?

a. One.
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b. Two.
c. Three.
d. Four.
ANSWER: d

8. European Public Procurement Directives apply to which of the following governmental institutions?
a. The State.
b. Regional and Local Authorities.
c. Bodies governed by public law.
d. All governmental institutions.
ANSWER: d

9. Which of the following best explains ‘central purchasing bodies’?

a. Purchasing organizations based in central Europe.
b. Organizations instituted by member contracting authorities to obtain benefits from co-ordinated purchasing
activities.
c. Organizations of suppliers to public bodies.
d. Organizations which audit public bodies’ purchasing contracts.
ANSWER: b

10. Which of the following does not constitute a ‘formal agreement’?

a. A contract.
b. A purchase order.
c. An invoice.
d. A verbal agreement.
ANSWER: d

11. Which of the following is a principle of public procurement?

a. Value for money.
b. Competitive tendering.
c. Efficiency.
d. Non-discrimination.
ANSWER: d

12. Which of the following is a principle of public procurement?

a. Value for money.
b. Competitive tendering.
c. Proportionality.
d. Efficiency.
ANSWER: c

13. Which of the following is a principle of public procurement?

a. Value for money.
b. Transparency.
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c. Efficiency.
d. Competitive tendering.
ANSWER: b

14. Which of the following is a principle of public procurement?

a. Equality.
b. Competitive tendering.
c. Efficiency.
d. Value for money.
ANSWER: a

15. Which of the following best explains ‘a framework agreement’?

a. An agreement to establish contractual terms such as price.
b. A formal contract.
c. Purchaser rights.
d. Supplier obligations.
ANSWER: a

16. Which of the following best explains ‘a framework agreement’?

a. An agreement to establish contractual payments.
b. An agreement to establish contractual terms such as the quantities envisaged.
c. Purchaser rights.
d. Supplier obligations.
ANSWER: b

17. Which of the following best explains ‘threshold values’?

a. An agreement to establish contractual payments.
b. Minimal contractual terms such as the quantities envisaged.
c. Minimum order quantities for public procurement.
d. Purchasing volumes beyond which public institutions are obliged to follow European legislation when making
purchasing decisions.
ANSWER: d

18. According to the EU Directives on public procurement threshold values, the total value of the lots which are separated
from the total contract should not exceed which of the following percentages of the total contract value?
a. 5%.
b. 10%.
c. 15%.
d. 20%.
ANSWER: d

19. Which activity commences a European tender?

a. An e-mail.
b. A letter.
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c. An advertised contract notice.
d. Word of mouth.
ANSWER: c

20. What is the title of the procurement database of the European Commission?
a. Tender Electronic Daily (TED).
b. Public Purchasing (PP).
c. Tender electronic weekly (TEW).
d. European Purchasing (EP).
ANSWER: a

21. Which of the following best comes before the ‘contract notice’?
a. The contract awards notice.
b. The notification of unsuccessful bidders.
c. The contract evaluation.
d. The prior information notice.
ANSWER: d

22. Which of the following comes immediately before the ‘contract award notice’?
a. The contract notice.
b. The notification of unsuccessful bidders.
c. The contract evaluation.
d. The prior information notice.
ANSWER: a

23. Which of the following comes after the ‘contract notice’?

a. The contract award notice.
b. The notification of unsuccessful bidders.
c. The contract closing date notice.
d. The prior information notice.
ANSWER: c

24. Which of the following is a European Directives public procurement procedure?

a. Open procedure.
b. Termination procedure.
c. Selection procedure.
d. Closed procedure.
ANSWER: a

25. Which of the following is a European Directives public procurement procedure?

a. Innovation partnership.
b. Termination procedure.
c. Selection procedure.
d. Closed procedure.
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ANSWER: a

26. Which of the following is a European Directives public procurement procedure?

a. Design contest.
b. Notification procedure.
c. Selection procedure.
d. Closed procedure.
ANSWER: a

27. Which of the following is a European Directives public procurement procedure?

a. Closed procedure.
b. Notification procedure.
c. Selection procedure.
d. Restricted procedure.
ANSWER: d

28. Which of the following is a European Directives public procurement procedure?

a. Closed procedure.
b. Dynamic purchasing system.
c. Notification procedure.
d. Selection procedure.
ANSWER: b

29. Which of the following is a European Directives public procurement procedure?

a. Closed procedure.
b. The notification to unsuccessful bidders.
c. Competitive procedure with negotiation.
d. The prior information notice.
ANSWER: c

30. Which of the following is a European Directives public procurement procedure?

a. Negotiated procedure with or without prior publication.
b. Notification to unsuccessful bidders.
c. The contract closing date notice.
d. The prior information notice.
ANSWER: a

31. Which of the following is a European Directives public procurement procedure?

a. Open procedure.
b. Notification to unsuccessful bidders.
c. Competitive dialogue.
d. The prior information notice.
ANSWER: c

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32. Which of the following is a European Directives public procurement procedure?
a. Open procedure.
b. Innovation partnership.
c. Competitive tendering.
d. The prior information notice.
ANSWER: b

33. Which of the following best explains public procurement ‘open procedure’?
a. Open to companies globally.
b. Every market party within the EU should be able to subscribe to a governmental tender.
c. Restricted to non-EU companies.
d. Open to public bodies only.
ANSWER: b

34. Which of the following best explains public procurement ‘restricted procedure’?
a. The procedure with pre-selection.
b. Only EU companies can tender.
c. Only large companies may tender.
d. Only non-EU companies may tender.
ANSWER: a

35. Which of the following best explains public procurement ‘design contest’?
a. Tendering organizations submit designs to be ranked by the purchasing organization.
b. Contracts are awarded prior to design being submitted.
c. Submitted designs are judged by a jury of professionals in fields complimentary to the nature of the design.
d. Designs are given to tendering organizations.
ANSWER: c

36. Which of the following best explains public procurement ‘competitive procedure with negotiation’?
a. Only one supplier can tender.
b. Contracting authorities can negotiate with suppliers.
c. Submitted tenders are judged by a jury of professionals in fields complimentary to the nature of the design.
d. Suppliers negotiate with each other.
ANSWER: b

37. Which of the following best explains public procurement ‘negotiated procedure with or without prior publication’?
a. Contracting authorities do not need to publish a prior notice before negotiating with suppliers.
b. Contracting authorities cannot negotiate with suppliers.
c. Tenders are submitted from suppliers in a sequence according to the suppliers ranking.
d. Suppliers negotiate with each other.
ANSWER: a

38. Which of the following best explains public procurement ‘competitive dialogue’?
a. Contracting authorities can negotiate with suppliers on the final supply arrangements.
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b. Detailed specifications from a preferred supplier follow a pre-selection of qualified suppliers.
c. Negotiations take place throughout the supplier selection process.
d. All suppliers are invited to give a presentation followed by questions and answers.
ANSWER: b

39. Which of the following best explains public procurement ‘innovation partnership’?
a. A procedure to develop and acquire innovative solutions to problems face by authorities.
b. A Partnership between two tendering suppliers.
c. A new company partnering an established company to bid for contracts.
d. A partnership from two or more EU countries.
ANSWER: a

40. Which of the following best explains public procurement ‘dynamic purchasing system’?
a. A constantly changing purchasing system.
b. A system for ordering non-standard items on an irregular basis.
c. An electronic process for invoicing suppliers.
d. An electronic process facilitating buying standard goods and services.
ANSWER: d

41. Which of the following best explains ‘defining specifications’?

a. Specifications are the input for the consecutive stages of the purchasing process.
b. Standard contractual terms.
c. Purchaser obligations.
d. Order quantities.
ANSWER: a

42. Which of the following best explains ‘proportionality’?

a. Specifications and conditions should be in line with the nature of the assignment and linked to the subject
matter.
b. Costs and risks should be shared between purchaser and supplier.
c. Specifications and conditions should not be in line with the nature of the assignment and not linked to the
subject matter.
d. Specifications and conditions should allocate proportional responsibility between purchaser and suppliers.
ANSWER: a

43. Which of the following best explains ‘supplier selection criteria’?

a. The requirements that the EU will use to select all suppliers.
b. The requirements that the EU will use to select all pre-selected suppliers.
c. The requirements that the contracting authority will use to select all suppliers.
d. The requirements that the contracting authority will use to select all pre-selected suppliers.
ANSWER: d

44. Which of the following best explains ‘supplier award criteria’?

a. Criteria used to evaluate the detailed supplier proposal.
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b. Criteria used to evaluate the initial supplier proposal.
c. Criteria used to evaluate the costs.
d. Criteria used to evaluate the quality.
ANSWER: a

45. Which of the following best explains ‘suitability criteria’?

a. Criteria relating to economic standing.
b. Criteria relating to financial standing.
c. Criteria relating to financial and economic standing and professional ability.
d. Criteria relating to financial and economic standing.
ANSWER: c

46. Which of the following best explains ‘exclusion criteria’?

a. Criteria related to the personal situation of suppliers which prevent contracts being awarded.
b. Exclusive rights to tender.
c. Legal restrictions preventing companies from tendering.
d. Criteria preventing non-EU companies from tendering.
ANSWER: a

47. Which of the following best explains ‘mandatory exclusion criteria’?

a. Participation in a criminal organization.
b. Tenders from non-EU companies.
c. Did not submit bid by the deadline in the tender.
d. Bids over the budget specified.
ANSWER: a

48. Which of the following best explains ‘mandatory exclusion criteria’?

a. Participation in child labour.
b. Tenders from non-EU companies.
c. Did not submit bid by the deadline in the tender.
d. Bids over the budget specified.
ANSWER: a

49. Which of the following best explains ‘mandatory exclusion criteria’?

a. Participation in politics.
b. Corruption.
c. Did not submit bid by the deadline in the tender.
d. Bids over the budget specified.
ANSWER: b

50. Which of the following best explains ‘mandatory exclusion criteria’?

a. Participation in politics.
b. Tenders from non-EU companies.
c. Did not submit bid by the deadline in the tender.
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d. Participation in trafficking human beings.
ANSWER: d

51. Which of the following best explains ‘mandatory exclusion criteria’?

a. Participation in politics.
b. Tenders from non-EU companies.
c. Did not submit bid by the deadline in the tender.
d. Fraud with financial interests in the EU.
ANSWER: d

52. Which of the following best explains ‘mandatory exclusion criteria’?

a. Participation in politics.
b. Tenders from non-EU companies.
c. Money laundering.
d. New companies with no financial records.
ANSWER: c

53. Which of the following best explains ‘optional exclusion criteria’?

a. Participation in politics.
b. Tenders from non-EU companies.
c. Money laundering.
d. Bankruptcy.
ANSWER: d

54. Which of the following best explains ‘optional exclusion criteria’?

a. Participation in politics.
b. Tenders from non-EU companies.
c. Money laundering.
d. Grave professional misconduct.
ANSWER: d

55. Which of the following is an example of optional exclusion criteria?

a. Collusion with other suppliers aimed at distorting competition.
b. Money laundering.
c. Tenders from non-EU companies.
d. Corruption.
ANSWER: a

56. Which of the following is an example of optional exclusion criteria?

a. Corruption.
b. Money laundering.
c. Tenders from non-EU companies.
d. Significant or persistent deficiencies in performance.
ANSWER: d
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57. Which of the following is an example of optional exclusion criteria?

a. Serious misrepresentation in supplying required information.
b. Money laundering.
c. Tenders from non-EU companies.
d. Corruption.
ANSWER: a

58. Which of the following is an example of optional exclusion criteria?

a. Corruption.
b. Money laundering.
c. Undue influence on the decision-making process.
d. Participation in politics.
ANSWER: c

59. Which of the following is an example of optional exclusion criteria?

a. Obtaining confidential information leading to advantages in the procurement process.
b. Money laundering.
c. Tenders from non-EU companies.
d. Corruption.
ANSWER: a

60. Which of the following is an example of optional exclusion criteria?

a. Corruption.
b. Money laundering.
c. Not fulfilling obligations relating to the payment of social security contributions or taxes.
d. Participation in politics.
ANSWER: c

61. Which of the following the cost savings figure is possible due to European Procurement Directives?
a. Up to 10%.
b. Up to 20%.
c. Up to 30%.
d. Up to 40%.
ANSWER: c

62. As a result of the general EU procurement procedures, contractors are not allowed to do which of the following?
a. Use brand or specific supplier specifications.
b. Use own suppliers.
c. Award contracts to non-EU companies
d. Avoid procurement procedures.
ANSWER: a

63. As a result of the general EU procurement procedures, contractors are not allowed to do which of the following?
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a. Avoid procurement procedures.
b. Use own suppliers.
c. Award contract to non-EU companies
d. Impeded free trade and free competition between market parties.
ANSWER: d

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