Question 1

Which of the following are true statements about RFQ process? Select TWO that apply.

Options :

A : RFQ process creates heavier administrative burdens than tendering process

B : Price is often the only variable in the RFQ and quotations

C : Buying organisation should only send RFQ to pre-qualified suppliers

D : RFQ process is not suitable for low value purchase

E : RFQ process requires the suppliers to submit their technical proposals

Answer: B,C

Question 2

A purchase order can become a contract between supplier and purchaser if it is...?

Options :

A : Issued by the buyer

B : Received by the supplier

C : Accepted by the supplier

D : Edited by the supplier

Answer: C

Question 3

A retailer prefers to display its best selling products and promotion programme on the building windows. According to rule of contract formation, this act will generally constitute...?

Options :

A : A legal capacity

B : An invitation to treat

C : An offer

D : A mailbox rule

Answer: B

Question 4

A procurement manager is preparing a long-term contract with a major supplier. She decides to use the variable pricing arrangement using price indices. The payment terms describe the circumstances and mechanism where the price is allowed to change. In order to successfully manage this type of contract, the buying organisation should have...?

Options :

A : Good market knowledge

B : Economy of scale

C : Value for money

D : Selection of base year

Answer: A

Question 5

Crown Commercial Service signed a four-year framework agreement with three suppliers on providing street lightning services. When the services are needed, the agency holds a mini competition. Eventually, the deal was awarded to Amey Public Services (APS) which was not listed as a supplier on the framework. Is this action compliant with legal requirement?

Options :

A : Yes, because APS tender matched all Crown Commercial Service’s requirement

B : No, because APS tender had not been evaluated before contract award

C : No, because once the framework agreement is set up, no additional suppliers can be added to it

D : Yes, because the intention had been to award the contract to APS in line with the framework agreement

Answer: C

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